TL;DR
- Brazil’s new tax law imposes a 30% charge on undeclared cryptocurrencies.
- The REARP program lets taxpayers declare hidden or undervalued digital assets.
- Brazil’s crypto transactions grew 110% to 1.7 trillion reals last year.
Brazil is preparing to introduce a new tax framework targeting undeclared digital assets. The measure, currently under consideration in the Senate, would impose a 30% charge on cryptocurrencies not previously reported to the tax authorities. The proposal, included in Bill 458/21, was approved by the National Congress on October 29 and forms part of a broader initiative to regulate the declaration of hidden wealth.
The legislation establishes the Special Regime for Asset Update and Regularization (REARP), which would allow taxpayers to declare undeclared or undervalued holdings, including both real estate and cryptocurrencies. Under the proposed rule, citizens who choose to comply will pay a total rate of 30%, divided equally between a tax payment and an administrative fine. The valuation will be based on the asset’s price as of December 31, 2024.
Expansion of the Digital Asset Market
The proposal comes amid a strong rise in digital asset activity across the country. A recent report from Chainalysis estimated that cryptocurrency transactions in Brazil reached 1.7 trillion reais between mid-2024 and mid-2025—representing a 110% growth in one year. Stablecoins have been at the center of that expansion, often used for remittances, trade settlements, and business transfers.
Authorities view the measure as a way to both ensure regulatory transparency and boost fiscal income. The policy aims to align Brazil’s taxation practices with the scale of its digital economy, which has increasingly drawn attention from both investors and regulators.
The proposal has also sparked political tension. Opposition lawmakers, including Sóstenes Cavalcante and Gilson Marques, criticized the plan as a “government expedient” to increase tax collection. Supporters, however, maintain that the reform is essential to stabilize the public budget for 2026 and formalize assets that have so far remained outside state supervision.
