Brazil has implemented a significant tax overhaul for cryptocurrencies, eliminating the previous exemption on small-scale gains and introducing a uniform 17.5% flat rate for all capital transactions. This change, enforced under Provisional Measure 1303, aligns with the government’s efforts to increase revenue through expanded financial market taxation. Previously, sales up to 35,000 Brazilian Reais (approximately $6,300) were exempt from income tax on crypto assets. Gains above this threshold had been taxed progressively, starting at 15% and reaching a maximum of 22.5%. The new flat rate applies to all investors regardless of transaction size and comes into effect June 12th, according to a report by Portal do Bitcoin.