Brazil expected to delay crypto tax talks ahead of election

Brazil's new finance minister, Dario Durigan, who took office on March 20, is expected to postpone a public consultation on applying a financial transaction tax (IOF) to certain cryptocurrency trades, CoinDesk reported, citing Reuters. The decision is reportedly aimed at avoiding contentious tax discussions with Congress ahead of the presidential election this October. The debate is based on a draft proposal that would classify some crypto transactions as foreign exchange deals, potentially subjecting them to a tax rate of up to 3.5%. However, industry groups have argued that taxing stablecoins as foreign currency may be unconstitutional. The discussions gained momentum after the country's central bank included some stablecoin activities under its foreign exchange regulations.