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The Brazilian tax policy for transactions in the crypto market may be reviewed following a request to halt the tax levied on cryptoasset transactions in the country.

According to a request by Congressman Kim Kataguiri (SP), collecting the tax on cryptoasset transactions is considered irregular. Therefore, the congressman requested in congress that a consultation solution be suspended on the matter.

In the document presented by the IRS in late 2021, the agency states that transactions between distinct cryptoassets are subject to tax, regardless of profit.

For Kim Kataguiri, the measure is irregular and hurts the Brazilian tax code. Without making a profit on the operation, users can be taxed in Brazil to exchange one cryptoasset for another.

The Federal deputy presented the Legislative Decree Project 3/22 that intends to annul what was presented in the consultation solution N° 214 of 2021 published by the Internal Revenue Service.

Kim Kataguiri also argues that taxes related to the crypto market should be approved by parliamentarians initially. In the case of tax collection on transactions of cryptoassets exchange, the politician claims that the model can be considered unconstitutional.