Brazil recently implemented a flat 17.5% tax on all capital gains from cryptocurrency, ending a long-standing tax exemption for minor gains. This move reflects a broader global trend, as governments around the world are increasingly viewing digital assets as a significant revenue opportunity. Just this year, Portugal introduced a similar tax of 28% on crypto gains held for under a year. Countries such as Germany and the UK, which still have some tax exemptions for cryptocurrency, may soon follow suit, tightening regulations as they seek to plug budget gaps. Governments are targeting crypto, considering it an easy tax target due to its perception as a speculative asset that primarily benefits the wealthy. The changes may disproportionately affect small traders, while larger institutions can absorb costs or relocate. Overall, the regulatory leniency enjoyed by retail crypto investors could soon be a thing of the past as governments enact stricter tax measures against the booming crypto market.

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