On June 14, according to CoinDesk, Brazil has canceled its long-standing tax exemption policy on cryptocurrency gains. According to the new temporary decree (Decree No. 1303), individual cryptocurrency profits will be uniformly taxed at a rate of 17.5%.

Previously, individuals selling no more than 35,000 reais (approximately $6,300) in cryptocurrency per month were exempt from taxes. Before this change, profits exceeding that limit were subject to a progressive tax rate, with a maximum rate of 22.5% applicable to transaction amounts over $5.4 million.

Taxing cryptocurrency is an inevitable trend; as cryptocurrency develops to a certain extent, taxation is a necessary path to compliance. Currently, many countries around the world have already begun taxing cryptocurrency.