The Department of Federal Revenue of Brazil (RFB) releases new rules that necessitate cryptocurrency exchanges to inform the regulators about the transaction by the users, so as to identify tax fraud, as per a report Cointelegraph Brazil on June 19.

The new guidelines elaborate that cryptocurrency trading platforms in Brazil should adapt to the new rules and report users’ crypto funds movements to the agency, along with complying to the requirements of Normative Instruction 1.888/2019 published in May of this year.

Basically, the agency demands that all Brazil-based cryptocurrency exchanges operators should provide information about all transactions carried out within their system. As for cryptocurrency exchanges platforms based outside the country must  provide information “whenever the monthly value of the operations, alone or jointly, exceed 30,000.00 Brazilian reals [$7,750].”

Along with informing the regulator about the volume of a transaction, the exchanges should also provide other data as well, such as the nationality of the digital currency holder, their residence or domicile, registration number and the crypto assets used in a transaction. In addition, the rules also dictate that all of the required information must be submitted within a specified period, i.e. “until 23:59:59, Brasilia time, on the last calendar month subsequent to that in which the operation took place.”

The said rules will come into force in September 2019. The legal director of the Bitcoin Banco Group, Brazil’s largest cryptocurrency broker, asserts that such an initiative was expected for a long time. He adds that Bitcoin Banco has incorporated provision in order to hand over the required information to authorities.

At the end of May, that the President of the Chamber of Deputies of Brazil has called for a commission that will consider and govern cryptocurrency regulation in the country. The commission was tasked with regulating local activities around Bitcoin (BTC) and other digital assets. Further, it is expected to be composed of 34 members in accordance with the House Rules of Procedure.

Read more: Facebook To Testify Its Crypto To US Senate Banking Committee On July 16

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