The Brazilian Senate has passed legislation proposing an income tax on crypto gains from offshore exchanges, awaiting final approval from the country's president. This proposal is slated for potential enactment on January 1.

The bill aims to introduce a levy of 15% on all earnings garnered from cryptocurrencies held on offshore exchanges, Cointelegraph reported. If authorized, this tax legislation would impact Brazilians who earn more than $1,200 from foreign exchanges and investment funds with a single shareholder.

Brazil's Fast-Paced Crypto Landscape

The anticipated revenue from this tax reform is substantial, with the government targeting $4 billion for the forthcoming year. Despite its potential financial implications, the legislation has met criticism. Brazilian Senator Rogerio Marinho voiced dissent, attributing the introduction of this tax to poor management by the government.

Brazil's crypto market has witnessed rapid growth, ranking ninth globally for crypto adoption. The country has seen a surge in assets under management for spot Bitcoin exchange-traded funds, with approximately $100 million in holdings.

Brazil's rising interest in digital assets has attracted global attention, leading various international crypto exchanges to establish a presence in the country. Apart from Mercado Bitcoin, other players hold Brazilian payment licenses, including Crypto.com and Bitso.

In August, Binance introduced Binance Pay service to the Brazilian market. The exchange said that the unveiling of this contactless crypto payment platform aims to revolutionize payment methods, offering Brazilian users an array of digital asset choices and seamless transactions.

Crypto Firms Race to Establish Presence in Brazil

The expansion of Binance Pay into Brazil signified a leap forward in the crypto payment sector, catering to the growing demand for digital currency transactions in the region. With a diverse selection of over 70 cryptocurrencies, including Bitcoin, BNB, Ether, and USDT, the service aims to provide Brazilian users with a suite of payment options.

Binance Pay boasts zero transaction fees and offers merchants the flexibility to accept payments in Brazilian Real or other various cryptocurrencies. The crypto exchange teamed up with Weo Games, a gaming store featuring popular titles like Free Fire, Valorant, and League of Legends, to roll out the service.