Brazil has implemented a new cryptocurrency tax law, effective June 12, 2025, introducing a flat 17.5% tax on all crypto capital gains. This replaces the previous progressive tax model and eliminates the exemption for monthly sales up to 35,000 reais. The tax applies to assets on local and offshore exchanges, self-custody wallets, and platforms like DeFi and NFTs. The reform, under Provisional Measure 1303, is part of a strategy to boost revenue amid a high tax burden, which was 32.32% of GDP in 2024. While the new tax impacts small investors and gig-economy traders, it offers reduced rates for high-net-worth traders. The law aims to close loopholes and regulate gray areas in the crypto market, positioning Brazil competitively in the global crypto landscape.