Brazil sees record filings with companies holding crypto

by Arthur · October 9, 2022

More Brazilian companies are adopting cryptocurrencies as the country recorded the highest number of institutional crypto ownership in August.

The Brazilian tax authority reported that it registered more than 12,000 companies in the country that declared that they owned cryptocurrency on their balance sheets. This is an increase from the 11,360 companies that declared in July.

However, the number of individuals declaring cryptocurrency assets in the same month fell by 35,000. However, with more than 1.3 million people signing up, the number is high and adoption levels remain very high.

The figures come from the mandatory monthly report from the Swedish Financial Supervisory Authority on ownership of cryptocurrencies, which gives an idea of the direction of the market.

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USDT and Bitcoin lead adoption

In particular, USDT is the most important cryptocurrency in use in the country. In terms of transaction volume, the dollar-pegged stablecoin saw the largest volume among all digital assets.

The total value of USDT transactions in August was over $1.4 billion. This occurred across 79,836 transfers, with the average amount per transaction being $18,000.

But when it comes to the number of transactions, Bitcoin has the highest. There were 2.1 million transfers with Bitcoin, with an average transaction amount of $130.

Other popular cryptocurrencies in the country include USDC, ETH and the Brazilian Real-pegged stablecoin, BRZ. The rapid adoption rate in the country has already influenced traditional financial institutions such as Santander to plan to include cryptocurrencies in their portfolio.

Crypto companies are looking at Brazil

But it could also drive foreign crypto companies to the region. Fast-growing crypto exchange FTX recently announced a partnership with Visa to launch crypto debit cards for 40 countries, including several in Latin America.

Meanwhile, the accelerated adoption in the country is likely due to the state of the economy, which has made dollar-pegged stablecoins and digital assets attractive.

But the regulatory clarity about cryptocurrencies, especially in taxation, has also helped. The RFB declared crypto-taxable assets in May and introduced a capital gains tax on the sale. But only investors who trade more than BRL 35,000 (about $7,200) must declare their trade and pay tax.

Recently, the Brazilian police caught a group that allegedly used crypto to launder funds.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here

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