The Normative Instruction No. 1,888/2019 and the New Cryptocurrency Reporting Rules in Brazil

The lion (as the Brazil equivalent of the IRS is also called) is increasingly interested in cryptocurrencies. First with the Income Tax, where we need to report possession of cryptocurrencies if having an amount worth at least a thousand BRL (Brazilian Reals, roughly 250 USD at the moment of writing), capital gains from selling cryptocurrencies (and pay taxes if profits in the month exceed 35,000 BRL, roughly 8,750 USD at the moment of writing). And now, with the Normative Instruction No. 1,888/2019 (page in Portuguese) that came into effect in August 2019, more rules are coming.

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Basically, individuals who, during a month, either move more than R$30,000.00 (thirty thousand Brazilian reals) in cryptocurrencies at exchanges outside Brazil, or make cryptocurrency transfers above this value without using exchanges (as a means of payment, etc.), will have to report the operations until the last day of the following month. Those who only use Brazilian exchanges don't need to send a report because the new rules require the Brazilian exchanges to report all operations. So, I believe many of us are free from having to send a report.

Who will really have a lot of work because of this, though, are the exchanges, which will have to report all operations performed by all users regardless of value (I.E., including my minuscule 10 or 20 BRL trades :P ). They'll have to report everything (the operation date, whether it was a purchase or a sale, the price, the cryptocurrencies' amount, user data such as name, address and CPF - it's like the Individual Taxpayer Identification Number -, their fees...), and at the end of the year, they'll have to report the state of every customer's account on December 31st (balances in both fiat and cryptocurrencies etc.).

I'm still way below all the minimum cryptocurrencies reporting requirement limits (including the Income Tax one), but as I've begun fiddling with cryptos to invest, it's best to stay alert about regulation rules (some of the cryptos may suddenly shoot up to the moon... we never know!).

And for those who need to send a report, the first report must be submited by September 30, 2019, regarding the operations from August.

The article on the link below (in Portuguese) explains exactly who should send a report, all the information that the reporting people should provide, and a step-by-step tutorial:

https://www.guiadareceitafederal.com.br/declaracao-de-bitcoin-e-criptomoedas-da-receita-federal/