The Brazilian Ministry of Finance is set to propose a decree that would classify cryptocurrency transactions as foreign currency exchanges, enabling the government to tax these flows under the Tax on Financial Operations (IFO). This move, which will be open to public consultation, aims to regulate and tax cryptocurrency and stablecoin transactions, potentially altering crypto usage trends in Brazil. The proposal follows the Central Bank of Brazil's classification of certain stablecoin operations as foreign exchanges. While specific tax rates have not been disclosed, the IFO currently levies a 3.5% tax on foreign currency transactions. The initiative is expected to face strong opposition from the Brazilian Association of Cryptoeconomics (Abcripto) and members of Congress, who argue that such measures could harm the Brazilian populace. Abcripto has indicated it may pursue legal action if the decree is enacted.