Brazil has enacted a significant change in its cryptocurrency tax policy, abolishing exemptions and implementing a flat 17.5% tax rate on all individual crypto profits. The new decree, effective June 14, 2025, impacts both retail and institutional investors alike. Previously, individuals earning under a certain threshold were exempt from paying taxes, but the new rule eliminates those exemptions. This move aims to simplify tax administration and potentially increase state revenue from cryptocurrency trading. While larger players may benefit from reduced top tax rates, smaller investors face increased liabilities due to this change in policy. The Brazilian government’s decision has significant implications for the country’s crypto market dynamics, impacting both retail and institutional players.