Governments Worldwide Target Crypto for New Tax Revenue Governments are getting serious about taxing crypto. Brazil and Portugal are leading the way, showing a global shift in how countries view digital assets.
Brazil recently removed its tax exemption for small crypto gains, now hitting all digital asset capital gains with a flat 17.5% tax. Similarly, Portugal, once a "crypto tax haven," now imposes a 28% tax on gains from crypto held for less than a year. Even the UK has tightened its rules, slashing the tax-free allowance for capital gains from £6,000 to just £3,000.
As crypto markets become more mainstream-and profitable-nations are seeing a huge opportunity for revenue, especially those facing budget issues. The challenge is that these taxes can hit smaller traders the hardest, while big institutions can simply move to countries with more favorable policies.
The era of easy crypto tax is ending. It's no longer a question of if, but how fast other nations will follow suit. Investors and crypto businesses need to prepare for this new reality of stricter financial oversight.
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