Opinion: Robin Singh, CEO of Koinly
Crypto may be the first tax lever to pull it when scrambled to get more revenues, if the last step for Brazil is anything you should go through.
In June, Brazil canceled its tax exemption to make slight encoding gains and made a flat tax by 17.5 % on all capital gains of digital assets, regardless of the amount. The decision was part of a wider effort by the Brazilian government to support revenues through Increase financial market taxes.
This is more than a local tax tablet. A clear pattern appears as governments find ways to extract more assets. Throughout the world, politicians make a new look at encryption as an opportunity to revenue.
The global style began to appear
Only in 2023, Portugal brought 28 % tax on the encryption gains that were held for a period Exodus as exempt from taxes.
The real question now is how much time with countries Friendly tax policies You can hold the line before following the lawsuit, which will be alongside tightening screws.
Germany, for example, is currently excluding encryption gains from capital profit tax if assets are being held for more than a year. Even for property that is less than a year, gains remain up to 600 euros ($ 686) annually tax exempted.
Meanwhile, the UK is providing a wider 3000 pounds (3,976 dollars) instead of tax exempt from all assets, including encryption, although this amount has been reduced by 50 % from 6000 pounds in 2023, indicating more possible discounts in the future.
Gray Zone is approaching its end
While it may seem a slight change, reducing the 3000 -pound threshold can generate significant tax revenues, especially with the recent financial behavior body data (FCA), which turned out to be 12 % adult adults now with encryption.
It is difficult to imagine that it is completely out of the table, especially with the increase in the debts of the UK government.
The era of retail encryption investors who have a gray area of organizational leniency closes. As the encryption market continues to ripen and prices continue to rise, governments note media headlines covering explosive encryption growth.
This is especially true in emerging markets, where governments are under increasing pressure to connect budget gaps without implementing a violent political reaction from the most obvious or controversial tax increases.
No other assets have been identical to the average annual bitcoin yield of 61.2 % over the past five years.
Crypto is an easy goal for governments
Fortunately, Crypto is an easy tax target for governments. It is often seen as risky, speculative and is considered mainly the wealthy. Although taxes are imposed on this, it is not controversial with the public, it also brings negative aspects, especially for ordinary investors and startups.
Related to: Japan’s encryption repair: What investors should know in 2025
For example, the Brazilian structure of 17.5 % of the young traders beaten unparalleled.
While large institutions can absorb costs or move to judicial states with more convenient rules, ordinary users, including those who use encryption to provide exposed economies, bear the cost.
With increasing possibilities that other governments will follow the example of Brazil and Portugal, the investment era in low tax encryption or tax exempt may end.
The question is not whether the other encryption countries will tighten their grip on imposing encryption taxes; It is the extent of speed and difficult.
Opinion: Robin Singh, CEO of Koinly.
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
