Brazil’s crypto industry is pushing back against potential government plans to impose taxes on stablecoin transactions, warning that such a move could trigger legal challenges. Abcripto, which represents more than 50 companies across Brazil’s digital asset sector, has stated it would pursue legal action if the Ministry of Finance attempts to introduce stablecoin taxation through an executive decree. Julia Rosin, the recently elected president of the association, argued that taxing stablecoin transactions in this manner would be unconstitutional and conflict with existing legislation approved by Brazil’s Congress. According to Abcripto, stablecoins are currently regulated as crypto assets rather than foreign currencies, and applying a financial exchange tax would improperly reclassify them. The warning highlights rising tension between policymakers seeking new revenue sources and an industry concerned about regulatory overreach and legal uncertainty.
The debate centers on whether stablecoins should be treated as foreign currency instruments for tax purposes. Rosin has publicly argued that the Financial Exchange Tax is designed specifically for currency exchange transactions and should not apply to stablecoins, which are digital tokens even if they are pegged to fiat values. She noted that taxation already occurs at the point of issuance, since minting a stablecoin involves converting fiat currency into a digital asset. From the industry’s perspective, imposing additional taxes on transfers or flows would amount to double taxation and undermine the efficiency that makes stablecoins attractive for payments and settlements. Supporters of the industry’s position also argue that such measures could discourage innovation and push activity to less transparent channels, weakening oversight rather than strengthening it.
Government officials have previously indicated that stablecoin taxation remains under consideration as part of a broader effort to regulate crypto assets. Statements from the Brazilian Ministry of Finance last year suggested a willingness to pursue both taxation and regulation of digital assets, prompting criticism from pro crypto lawmakers who warned against measures that could harm competitiveness. The renewed standoff underscores Brazil’s challenge in balancing fiscal policy with a rapidly growing crypto economy. As stablecoins become more widely used for payments and cross border transfers, the outcome of this dispute could shape how digital assets are treated under Brazilian law and influence regulatory approaches across Latin America.
