Multiple Brazilian associations jointly oppose the imposition of a financial transaction tax on stablecoin trading

PANews March 15, according to CoinDesk, Brazil's crypto and fintech industry associations ABcripto, ABFintechs, Abracam, ABToken, and Zetta issued a joint statement opposing the expansion of the financial transaction tax (IOF) to cover stablecoin transactions. These associations represent more than 850 companies in Brazil.

The associations believe that including stablecoin transactions within the scope of taxation would conflict with Brazil's current legal framework and harm the country's crypto industry. They argue that this move may violate the Brazilian Constitution and the Virtual Asset Law passed in 2022. According to an auditor from the Brazilian Federal Revenue Service, Brazil's monthly crypto market transaction volume is about $6 billions to $8 billions, with approximately 90% being stablecoin transactions.