Brazil’s Crypto Industry Threatens Lawsuit Over Stablecoin Tax

Ben Graham · January 13

Brazil’s crypto industry says it will take the government to court if officials move ahead with a new tax on stablecoin transfers. The news comes at a time when stablecoins already make up as much as 90% of crypto trading in the country, so any extra fee would reach users almost immediately. The dispute is unfolding as crypto use in Brazil moves beyond trading and into everyday payments.

An industry group called Abcripto says the Finance Ministry does not have the legal power to create this tax on its own and argues that doing so would break the constitution. Lawmakers and regulators, on the other hand, see stablecoins as a way to move money around existing currency rules. That disagreement is now out in the open.

For regular users, this is not some distant policy debate. It could decide whether sending digital dollars becomes more expensive overnight.

What Is Brazil Arguing About Stablecoins?

Stablecoins are cryptocurrencies tied to a currency like the US dollar. You can think of them as digital cash that moves online. In Brazil, people use them to save in dollars, trade crypto, and send money to other countries.

Brazil’s Crypto Industry Threatens Lawsuit Over Stablecoin Tax - ExpertFX School — Source: Shutterstock

The Finance Ministry wants to treat stablecoin transfers the same way it treats foreign currency exchanges. Brazil already charges a tax on those transactions, known as the IOF tax. Abcripto, which represents more than 50 crypto companies, says stablecoins are not foreign money and should not be taxed that way.

Reuters reports that new central bank rules starting in February 2026 would also classify stablecoin payments as foreign exchange activity. The industry says that the step goes further than what Congress approved.

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Why Stablecoin Taxes Hit Regular Users First

Stablecoins play a huge role in Brazil’s crypto market, accounting for up to 90% of all trading volume. That means a new tax would affect far more than professional traders. Freelancers, small businesses, and families sending money abroad would feel it too.

Brazil already removed its tax-free limit on crypto gains and replaced it with a flat 17.5% tax. If a transfer tax is added on top, using stablecoins could start to feel like paying a fee every time money moves.

That helps explain why Abcripto is pushing back now. If costs rise too much, users may turn to offshore platforms or informal services, which makes oversight harder for regulators.

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Regulation Pressure Is Not Just a Brazilian Story

Brazil is not alone in trying to figure this out. Governments around the world are still working out how to tax and track digital dollars. We have seen similar crypto tax enforcement challenges in India and ongoing stablecoin regulatory battles in the U.S.

What makes Brazil stand out is how widely stablecoins are already used. Because they function like an everyday payment tool, even small changes can spread quickly through the system.

For beginners, the takeaway is straightforward. Crypto rules can change fast, and taxes can add up. Keep records of your transactions and do not assume today’s rules will stay the same.

Brazil’s courts may now decide how stablecoins are treated under the law. Until that happens, users should expect more headlines and closer attention on how digital dollars move around the country.

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