Since the beginning of October, the Central Bank started demanding that Brazilian companies receiving foreign capital must declare cryptocurrencies to the Foreign Capital Investment Information Furnishing System (SCE-IED). The objective is to provide more transparency to international financial transactions, which leads to more control and raises an alert to corporate accounting.
“The argument is always about providing more transparency to transactions, but in reality, the Central Bank always wants more control over financial operations. And this aligns with the requirement to identify the type of cryptocurrency in the Income Tax declaration,” highlights Luis Fernando Cabral, a specialized accountant in investment accounting from Contador do Trader. The platform for reporting is at the Central Bank because, since 2023, the Cryptocurrency Legal Framework has defined the institution as the sector’s regulator.
With this registration at the Central Bank, it is possible to monitor and control the inflow of foreign capital into Brazil through crypto assets, not only enabling statistics and information but, above all, data cross-referencing with the Federal Revenue Service and, consequently, greater rigor and control in tax collection. “Now, companies’ accounting needs to be even more vigilant, to avoid missing important data, failing to report, and still running the risk of penalties in possible audits,” emphasizes Luis Fernando.
Before that, there was no procedure for registering this capital via crypto assets. Consequently, investors, especially entrepreneurs, did not register the influx of this type of capital. “In addition to solving an investment registration gap for entrepreneurs, the Central Bank simultaneously provides a tool to the Federal Revenue that will allow data and information to be cross-referenced at the time of declarations,” emphasizes the specialist.
