Two major crypto exchanges in Brazil, Latoex have confirmed to shut down their business after the implementation of new tax rules in the country. Crypto exchange Acesso Bitcoin, headquartered in Porto Alegre, advised clients to withdraw their funds from the exchange.
Crypto exchanges are unable to meet the tax authority’s new requirements.
Crypto exchanges in Brazil are shutting down as they are unable to meet new requirements put forward by the tax authorities. Crypto exchange Latoex (Latin America Token Exchange) announced to close down its operations last week as the CEO of Latoex Capital, the investment arm of the company, confirmed. The exchange is looking to sell off its assets to other companies and return the remaining funds to its clients.
Brazil is yet to regulate cryptocurrency.
The South American country is yet to adopt legislation to regulate cryptocurrency. Currently, all transactions that are carried out on Brazilian exchanges must be reported to the Secretaria da Receita Federal do Brasil (RFB), the Department of Federal Revenue. Exchanges that do not comply with this face massive fines and penalties. Lawmakers have proposed several bills to regulate the crypto industry in both houses of the country’s National Congress. Several crypto-related bills are currently under review in the Senate.
Europe has also amended its money laundering laws imposing new regulations on crypto business and custodians operating in European countries. The new rules have also forced several crypto exchanges to shut down.