Rio de Janeiro has decided to allow residents to pay their property taxes by using cryptocurrencies starting in 2023. It is now the first Brazilian city to do so. Companies that are willing to assist in cryptocurrency payments for taxes in Rio are required to register with the city authorities and demonstrate compliance with the Brazilian SEC regulations. Getting the Know-Your-Customer (KYC) details of all users is among the most important requirements for crypto firms to operate in the Latin American country.
Upon receipt of the payment, each tax payer will be permitted to deposit their funds with more than one cryptocurrency. The hired crypto firms will then convert the payments to the Brazilian Real for the treasury.
Rio de Janeiro is a global city. We are following technological and technological advances in the world of digital financial assets. We have a look to the future and we want to become Brazil''s capital of innovation and technology, according to a CoinTelegraph report.
The development comes as a result of Brazil''s crypto boom, which has surpassed international headlines.
According to a September survey, Brazil''s population had access to digital assets.
Today, a total of 12,053 organisations have declared holding cryptocurrency in Brazil. This is a six-fold increase from the 11,360 companies that had declared holding cryptocurrency in July this year.
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The two most popular currencies being held by Brazilian organizations are Bitcoin and stablecoin.
While the use of cryptocurrency as a tax technique isn''t new as a concept. Many areas of the United States like Wyoming, Arizona, and Utah are already dabbling in the idea.