Brazil has implemented a 17.5% tax on all capital gains from crypto, ending its previous tax exemption for small gains. This marks a significant shift as governments globally are increasingly targeting digital assets for revenue generation. Countries like Portugal and potentially Germany and the UK may follow suit, tightening crypto tax regulations. The UK has already reduced its capital gains tax-free allowance, signaling potential future cuts that could affect a growing number of retail investors. As financial pressures mount, especially in emerging economies, governments see crypto as a relatively easy tax target, capitalizing on its high returns while disproportionately impacting small traders. Consequently, the era of leniency for retail crypto investors might conclude, as authorities ramp up efforts to regulate and tax this burgeoning asset class effectively.

Source 🔗