Hey folks !!!! End of Anonymity in Cryptocurrencies: Binance and the Federal Revenue
The era in which cryptocurrency transactions were seen as completely anonymous has come to an end in Brazil. Now, Binance, one of the largest digital asset exchanges in the world, and other trading platforms can no longer keep their clients' movements a secret.
The Obligation to Inform
According to Normative Instruction (IN) No. 1,888 from the Federal Revenue, all exchanges operating in the country, including foreign ones, are required to report all transactions of their users in detail. This means that the Federal Revenue has access to a huge volume of data, which includes:
* User identification: their full name, CPF, and address;
* Transactions carried out: the type of cryptocurrency bought or sold;
* Values and dates: the price of each operation and when it occurred.
What Does This Mean for You?
This measure aims to combat tax evasion, money laundering, and other illicit activities. If you trade cryptocurrencies, you should be aware that every move you make may be monitored. The anonymity that many expected to find in the world of cryptocurrencies no longer exists, at least not for those using centralized platforms like Binance.
If your transactions generated profits, the responsibility to declare and pay the due tax is now more visible than ever. The Federal Revenue has all the information to cross-check the data from your brokerage with your Income Tax declaration. The lack of declaration or incorrect information can result in heavy fines.
The Risk of Inattention
The Federal Revenue may, at any moment, request this data to initiate an inspection. Attention to the correct declaration of your cryptocurrencies is essential. It is not a possibility, but a reality: your transactions are on the government's radar. The era of "invisible" cryptocurrency transactions is over.