Stablecoin Dominance in Brazilian Crypto Market
Brazil's cryptocurrency market is experiencing significant activity, processing between $6 billion and $8 billion monthly. A notable trend is the increasing dominance of stablecoins such as USDT and USDC, which have accounted for up to 90% of reported transaction volume in certain months. These figures were shared by Flavio Correa Prado, an auditor at Brazil's tax authority, Receita Federal, during a technical presentation at Blockchain Conference Brasil.
Projections indicate that the monthly volume could potentially reach $9 billion by 2030 if current growth trends persist. This substantial shift towards stablecoins marks a significant transformation within Brazil's crypto ecosystem, which was once primarily dominated by Bitcoin.
Introduction of DeCripto: A New Regulatory Framework
In response to the evolving crypto landscape, Receita Federal is set to replace its current crypto reporting rule, known as IN 1.888, with a new system called DeCripto. This transition is scheduled to commence in July 2025, signaling a proactive adaptation by regulatory bodies to the growing scale and changing composition of crypto activities in the country.
The DeCripto framework is influenced by the Crypto-Asset Reporting Framework developed by the OECD and has been adopted by over 60 countries. This international standard facilitates the automatic exchange of tax information between different jurisdictions, providing local tax authorities with access to data concerning offshore cryptocurrency transactions.
New Classification and Reporting Requirements
Under the new DeCripto rules, cryptocurrency exchanges will be required to categorize transactions into specific types. These classifications will include crypto-to-fiat trades, crypto-to-crypto swaps, retail payments exceeding $50,000, wallet transfers, and movements to unhosted wallets.
The data collection process for this framework is slated to begin in January 2026, several months ahead of the July implementation date. This phased approach is designed to allow market participants adequate time to adjust their systems and operational processes to comply with the new reporting mandates.
Brazil's Central Bank Introduces Comprehensive Crypto Regulations
Concurrently, Brazil's central bank is implementing its most extensive crypto regulations to date. This new framework establishes a licensing regime specifically for crypto service providers and integrates numerous crypto-related activities into existing foreign exchange and capital market regulations.
Crypto firms operating within Brazil will be mandated to maintain capital reserves ranging from $2 million to $7 million, with the exact amount dependent on the specific type of business. Furthermore, foreign companies that serve Brazilian clients will be required to establish local entities to continue their operations under the new regulatory regime.
Companies will have a nine-month compliance period to meet all the stipulated requirements. Failure to adhere to the deadline could result in prohibitions from operating within Brazil's market, which has emerged as one of Latin America's most significant crypto hubs in terms of transaction volume.