Brazil preparing to get tough with foreign crypto exchanges

FINANCIAL authorities in Brazil are understood to be looking at potential tax claims against cryptocurrency exchanges providing services to Brazilians, but not actually based in the country.

Taxation chiefs in the capital Brasilia say they will soon be contacting exchanges and demanding an explanation of how they work, particularly with how they interact with local service providers.

Foreign crypto exchanges have no legal obligation to report transactions, but any that are established in South America's largest economy must do so. It is believed officials want to urge exchanges outside of Brazil to declare transactions taking place 'within its borders'.

"It's an area of concern for us to understand first how they operate here, whether there's any illegality or not," Andrea Chaves, deputy secretary of inspection at the federal revenue service, told Reuters.

"We are also concerned about having information on Brazilian wealth subject to taxation here."