Brazil Leads Latin America in CARF Implementation

Brazil has joined the first wave of CARF implementation, making it the largest Latin American economy to adopt the global crypto tax reporting framework. With one of the world's highest crypto adoption rates, Brazil's participation is significant for the region.

Brazil's Crypto Market

Brazil has one of the most active crypto markets globally:

• Estimated 10+ million crypto users
• Multiple domestic and international exchanges operating
• Growing institutional adoption
• Stablecoin usage for cross-border payments

Existing Crypto Tax Rules

Brazil already had domestic crypto reporting requirements before CARF:

• Monthly reporting obligation for exchanges (IN 1888/2019)
• Capital gains tax on crypto profits above R$35,000/month
• Detailed transaction reporting to Receita Federal

CARF adds international information exchange to these existing requirements.

What Changes with CARF

For Brazilian crypto platforms:

• Must collect tax residency self-certifications
• Need to obtain foreign TINs for non-resident users
• Will report to Receita Federal for international exchange
• Data on foreign users shared with their home countries

Latin America Context

Brazil's CARF participation contrasts with other regional players:

• Mexico: Also Wave 1 (January 2026)
• Colombia: Wave 1 participant
• Argentina: Not yet committed to CARF
• El Salvador: Not committed (Bitcoin legal tender)

Impact on Brazilian Users

For Brazilian tax residents:

• Domestic reporting continues as before
• Using foreign exchanges? That data may now reach Receita Federal
• Tax compliance becomes more important as cross-border visibility increases

For Foreign Users of Brazilian Exchanges

Non-residents using Brazilian platforms:

• Must provide tax residency self-certification
• Transaction data will be shared with home country authorities
• TIN validation will be required