Brazil’s Tax Authority Fines Those Who Fail to Declare Bitcoin and Crypto

Brazil’s Tax Authority Fines Those Who Fail to Declare Bitcoin and Crypto

The tax authority of Brazil fines taxpayers who fail to declare their Bitcoin and crypto transactions

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Brazil’s tax agency, the Department of Federal Revenue (RFB), published a new tax code that specifies fines for taxpayers who fail to declare their Bitcoin (BTC) and cryptocurrency transactions.

On Dec. 6, Cointelegraph Brasil reported that the new crypto tax code is a further follow-up to provisions made by the RFB in August that require Brazilian citizens to report all transactions involving cryptocurrencies, in accordance with rules established by Normative Instruction 1,888 introduced in May 2019.

The already implemented tax code applies to individuals, companies and brokerages, and includes all crypto-related activities, including buying and selling, as well as donations, barters, deposits, withdrawals and others.

Those who fail to file a statement on their crypto transactions will be subject to penalties ranging from 500 Brazil reals (BRD) to 1500 BRD, or from $120 to $360. 

In August, Cointelegraph reported that RFB believes that the cryptocurrency market in Brazil has more investors than Brazil’s second-oldest stock exchange, B3, which reportedly had about 800,000 customers at the time. 

RFB almost ran out of money

At the beginning of September, Cointelegraph Brasil reported that the RFB said that it will run out of funds by the end of the month. The tax authority reportedly said at the time that if the Brazilian government does not unlock financial resources, the tax agency would terminate agreements with contractors, stop issuing individual taxpayer registry identification numbers and paying income tax refunds.

Cryptocurrency exchanges also risked being affected, as the requirement that they report all user data and transactions involves the use of an RFB system. If the system shut down, crypto exchanges would simultaneously be legally compelled but unable to comply with data reporting requirements.


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The tax authority of Brazil fines taxpayers who fail to declare their Bitcoin and crypto transactions

Bitcoin Price Breaches $12,000 As Analysts Declare ‘Bear Trap’ Complete

Bitcoin Price Breaches $12,000 As Analysts Declare ‘Bear Trap’ Complete

Bitcoin’s fresh gains lead to suggestions downturn was bear trap

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Bitcoin (BTC) continued defying expectations to retake $12,000 on July 4 as analysts increasingly compare its performance to 2017’s parabolic rise. 

Market visualization courtesy of Coin360

Market visualization courtesy of Coin360

Data from Coin360 showed BTC/USD retracing slightly to $11,680 after hitting $12,025, continuing a rebound which began on Tuesday. 

Bitcoin’s behavior had surprised most earlier in the week, after a bearish move downwards to just $9,700 suddenly U-turned, mushrooming into fresh growth. 

Now, charts are looking increasingly like a repeat of bitcoin’s progress in the second half of 2017, regular trader Filb Filb says. 

Despite uploading what he described as a tongue-in-cheek chart, its prophecy – $14,000 – would nonetheless likely come true, he explained, noting bitcoin must first clear resistance around $12,100. 

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

“Last couple days were a bear trap (in my opinion) and Bitcoin continues to look strong,” fellow trader and investor, Josh Rager, continued

“Lots of buyer interest at $10k and see a move up over $12ks this coming week[.] One step at a time, will look to new yearly highs after $12k/$13k reclaimed.”

Bitcoin’s 2019 high so far resides at just over $13,800. In future, prediction models suggest, a year-end price of $21,000 would be appropriate, eclipsing the 2017 all-time high of $20,000.

Bitcoin meanwhile also continues to climb in overall market dominance, currently accounting for just under 63% of the total cryptocurrency market cap — the highest since the 2017 price peak. 

The figure spells out ongoing pain for altcoin investors, with major tokens failing once again to match bitcoin’s growth performance. 

Against 6% gains for BTC/USD, ethereum (ETH) remained stagnant, so far only briefly reclaiming the $300 mark. 

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

Most others in the top twenty exhibited similar flat performance or modest moves up or down of up to 2.5%.

The exception was chainlink (LINK), which shed around 10% in the 24 hours to press time.


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Bitcoin’s fresh gains lead to suggestions downturn was bear trap