Brazilian Tax Authority: Domestic USDT trading volume grows significantly, surpasses Bitcoin by far

A report from the Brazilian tax authority indicated that USDT trading volume is rapidly growing in the country, surpassing not only BTC by far but also exceeding the total volume of some mainstream tokens over the past two years.

Brazilian Tax Authority: USDT Trading Volume Far Exceeds BTC

A report from the Brazilian Tax Authority tracking monthly data since 2019 has found significant growth in the trading volume of the US dollar stablecoins USDT and USDC. The trading volume of USDT reached $54.459 billion, surpassing BTC after a golden cross in May 2022 and nearly doubling the trading volume of BTC during the same period.

The Brazilian stablecoin BRL also saw a trading volume of $3.336 billion.

The Brazilian Tax Authority emphasized that they have been closely monitoring these changes:

The trading volume of Bitcoin and other cryptocurrencies has essentially been surpassed by stablecoins like Tether USDT, leading to significant impacts on Brazil's tax and regulatory situation, which is worth paying attention to.

USDT Trading Volume Almost Surpasses Total Volume of Mainstream Tokens

The Brazilian Tax Authority pointed out in the following chart that the growth of USDT in 2022, represented by the green line, has exceeded the total trading volume of other cryptocurrencies.

Additionally, the trend seems to continue in 2023, as indicated by the blue line.

Brazil Proposes Increased Taxes, Continues Monitoring Crypto Trading Activities

The Brazilian Tax Authority claims in the report that they can monitor crypto activities, detect suspicious transactions through a comprehensive analysis system.

This includes tracking the geographical location of users during cryptocurrency transactions.

Earlier reports suggest that Brazil is considering imposing higher taxes on cryptocurrency investment gains, which may come into effect as early as next year.

Government's New Source of Revenue! Brazilian Congress Considers Imposing Higher Taxes on Cryptocurrency Investment Gains