Brazil’s government is exploring whether to impose the IOF tax on cross-border crypto transactions, particularly those involving stablecoins. New central bank rules classifying stablecoin operations as foreign exchange dealings pave the way for this potential levy. Authorities aim to curb money laundering and under-invoicing schemes, as Brazil’s cryptocurrency market reached $42.8 billion in value by the end of 2025. The Finance Ministry is reviewing if IOF should be applied to international payments using virtual assets and stablecoins – transactions currently exempt from tax. While declining comment, one source revealed the goal is to ensure stablecoin usage doesn’t circumvent traditional FX rules. The potential revenue boost comes amidst fiscal pressure as Brazil struggles to meet its financial targets.