Brazil delays crypto tax consultation before election as government avoids new tax rules, while existing crypto laws and licensing requirements remain active in 2026.
Brazil has decided to delay new crypto tax rules as the country prepares for the 2026 presidential election. According to Reuters, the decision was taken after Dario Durigan became the new Finance Minister. The government wants to focus on election issues rather than launch new tax debates this year, officials said.
Government Pauses Crypto Tax Consultation Before Election
Dario Durigan assumed office after Fernando Haddad left his office to run for governor of Sao Paulo. Rather soon after assuming charge, Durigan altered the plans of the ministry. He decided to put the public consultation on crypto taxes on hold for the moment.
Related Reading: Brazil Revives Bill to Build 1M BTC Reserve
Meanwhile, the government does not want to run into political conflicts before the election. Tax changes can make for a strong debate in Congress. Because of this, the ministry prefers to work on smaller economic reforms, rather than new tax rules.
The crypto tax consultation was foreseen following new rules from the Central Bank of Brazil. However, officials now say that discussion may not return until after the election. Some reports indicate that the plan could be delayed as late as 2027.
Durigan also plans to concentrate on other projects that have the ability to boost the economy in the short-term. These include rules for large technology companies to rules for programs for data center investment. The ministry is also working on the plans to manage financial risks in banks.
Existing Crypto Rules Still Active in Brazil
Even though there are new tax rules that are delayed, older laws are still in effect. Since June 2025, 17.5% tax on crypto gains is imposed on crypto capital gains in Brazil. This rule applies for both local and offshore holdings. The previous exemptions for small trades below R$ 35,000 were eliminated.
The Central Bank also announced new rules for stablecoins at the end of 2025. Transfers using stablecoins are now considered to be the same as foreign exchange operations. Because of this, they are subject to the same taxation laws as traditional currencies.
Another important rule is that crypto service providers should be licensed to obtain official licenses. All Virtual Asset Service Providers have to apply for approval from the Central Bank. The deadline for the process of obtaining a license began in February 2026, and the grace period lasted until November 2026.
There is also a proposal to implement a 3.5% tax on a large purchase of crypto. This tax would be on any transaction above R$ 10,000. However, officials say this plan will probably be postponed until the next government term.
Election Pressure Changes Government Priorities
One of the main reasons for the delay is the election to be held soon. President Luiz Inacio Lula da Silva wants the government to concentrate on policies that assist voters quickly. Because of this, the ministry is trying to work on the income tax relief and economic programs rather than getting new taxes.
Another legal problem is also being reviewed by the Supreme Federal Court. Crypto is being decided by judges as to whether it may be used for campaign donations. The decision could have an impact on how political parties fundraise during the 2026 election.
For now, Brazil will continue to follow its current rules regarding cryptocurrencies but will keep an eye on the political situation. After the election, the government can host the tax consultation again. The final decision will determine how crypto will be regulated in Brazil for the next few years.
