Mandatory declaration of cryptocurrencies to the Central Bank brings more control to the movements

Since the beginning of October, the Central Bank has required Brazilian companies receiving foreign capital to mandatorily declare cryptocurrencies to the Foreign Direct Investment Foreign Capital Information Reporting System (SCE-IED). The objective is to bring more transparency to international financial transactions, which provides greater control and raises an alert for 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. This aligns with the mandatory identification of the type of cryptocurrency in the Income Tax return,” emphasizes Luis Fernando Cabral, an accounting specialist for investments at Contador do Trader. The reporting platform is hosted by the Central Bank because, since 2023, the Legal Framework for Cryptocurrencies designated the institution as the sector regulator.

With this registration at the Central Bank, it is possible to monitor and control foreign capital flows entering Brazil through crypto assets, not only enabling statistics and information but, above all, cross-referencing data with the Federal Revenue Service and, consequently, stricter control and rigor in tax collection. “Now, corporate accounting will need to be even more vigilant, to avoid missing any important data, failing to report it, and risking penalties in potential audits,” emphasizes Luis Fernando.

Prior to this, there was no registration procedure for this type of capital via crypto assets. As a result, investors, particularly business owners, did not record the inflow of such capital. “In addition to resolving a gap in investment registration for business owners, the Central Bank simultaneously provides a tool to the Federal Revenue Service that will allow cross-referencing of data and information during declarations,” highlights the expert.