The Brazilian Senate has approved new income-tax regulations that could result in citizens paying up to 15% on earnings from cryptocurrencies held on international exchanges. The bill has been approved by the Chamber of Deputies and is awaiting sanction by President Luiz Inacio Lula da Silva.

The new regulation could be effective as of January 1, 2024. The tax will affect Brazilians earning more than $1,200 from foreign exchanges and investment funds with a single shareholder. The government has set a revenue target of $4 billion for these taxes in the new year. This move aims to generate revenue for Brazil and align its cryptocurrency taxation policy with global trends. However, Brazilian Senator Rogerio Marinho criticized the law, stating that the government introduced a tax due to poor management.

Brazil ranks ninth in terms of crypto adoption, and the nation also has around $100 million in assets under management for spot bitcoin exchange-traded funds (ETFs).