<ul data-eligibleForWebStory="true">Brazil implements widespread crypto tax reform, introducing a uniform 17.5% capital gains rate.The reform eliminates crypto tax exemptions for traders, affecting investors of all transaction sizes.Self-custody wallets and offshore crypto holdings are now subject to Brazilian taxation requirements.Previously, small traders were exempt from taxes on transactions up to 35,000 Brazilian reals.Under the new regime, taxes will be assessed every three months, allowing offset of losses for up to five quarters.Starting in 2026, the deduction period for losses will be reduced, potentially leading to higher taxation on volatile crypto portfolios.The tax reform reflects broader changes in Brazil's financial markets, with tax adjustments on various financial instruments.The government abandoned plans to increase the Financial Transaction Tax, opting for specific asset class taxation instead.Brazilian legislators are debating a bill allowing part of salaries to be paid in cryptocurrency, with limits on Bitcoin payment.The bill signifies Brazil's evolving approach to integrating cryptocurrencies while balancing innovation, control, and revenue generation.The changes aim to regulate crypto activities that previously fell outside Brazil's tax system.The reforms seek to capture revenue from crypto market activities and bring consistency to taxation across different investment sizes.Brazil tightens tax regulations to include self-custody wallets and offshore crypto investments within the taxable domain.Increased tax measures extend to various financial sectors, including betting revenue, with rates raised to 18%.The tax reform in Brazil is part of an overall initiative to enhance revenue generation and streamline financial regulations.Highlighted Crypto News Today: After a 12% Lift-Off, Will SKY Break Through the Clouds?