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Brazil industry giants representing 850 companies decry stablecoin tax threat

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Brazil industry giants representing 850 companies decry stablecoin tax threat

Brazil’s leading cryptocurrency and fintech industry groups have warned that expanding a financial transaction tax to stablecoin operations could harm innovation and violate existing law.

In a joint statement shared with CoinDesk, industry associations ABcripto, ABFintechs, Abracam, ABToken and Zetta said recent discussions about extending a tax on financial operations (locally known as Imposto sobre Operações Financeiras, or IOF) to stablecoin transactions raise legal and economic concerns.

The organizations represent more than 850 companies across Brazil’s financial technology, virtual asset and market infrastructure sectors, the statement reads.

The debate centers on a levy applied to certain financial transactions, including foreign exchange operations. According to the associations, applying the tax to stablecoin transactions would conflict with Brazil’s current legal framework and harm the country’s crypto industry.

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They argue that the Constitution defines the IOF as applying only to the settlement of currency exchange transactions involving the delivery of national or foreign fiat currency. Stablecoins, they said, do not meet that definition.

Brazil’s Virtual Assets Law, enacted as Law No. 14,478 in 2022, explicitly states that virtual assets are not considered national or foreign fiat currency, the statement says. The industry groups say this distinction means stablecoins cannot legally be treated as instruments representing foreign currency under the IOF rules.

As a result, the organizations say any attempt to extend the tax through a decree or an administrative rule would be unlawful. Under Brazil’s constitutional framework, new taxes or expanded tax triggers must be approved through the legislative process.

“In this context, any expansion of tax incidence on operations with stablecoins through a decree or administrative rule is illegal, since acts of this nature cannot create or expand a tax triggering event,” the document reads.

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The groups also cautioned against conflating monitoring rules from Brazil’s central bank with taxation policy. They said oversight of digital asset transactions does not automatically justify applying the IOF tax to those activities.

Industry representatives argue that policy missteps could damage a rapidly expanding sector. Brazil has emerged as one of the world’s largest crypto markets, with an estimated 25 million people participating in the ecosystem.

Brazil’s stablecoin adoption

The associations said the country’s crypto sector has grown alongside a broader wave of financial innovation, including fintech platforms, digital payments, and blockchain infrastructure. They also noted that similar taxes on stablecoin transactions are not widely used in other major economies.

Stablecoin usage in Brazil has surged dramatically in recent years, turning the country into one of the largest markets for the assets in Latin America and globally.

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Dollar-pegged tokens like Tether’s USDT and Circle’s USDC now dominate crypto activity as Brazilians use them to hedge volatility in their fiat currency, the real (BRL), move money across borders at lower cost, and provide liquidity for trading.

Brazil’s crypto market, according to an auditor at Brazil’s tax authority, Receita Federal, is moving between $6 and $8 billion per month, with 90% of that being stablecoin flows.

Not all of them are U.S. dollar stablecoins, as BRL-pegged stablecoins are gaining traction. Trading in tokens linked to the Brazilian real reached about $906 million in the first half of 2025, according to Dune data.

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Can ETH Launch a Strong Rebound After Reclaiming $2K?

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Can ETH Launch a Strong Rebound After Reclaiming $2K?

Ethereum is still in recovery mode, but the rebound is starting to look more organized than before. The asset continues to hold above the February base and is pressing closer to a key breakout area, which suggests buyers are gradually gaining confidence even if the larger trend has not fully turned yet.

Ethereum Price Analysis: The Daily Chart

The daily chart still carries the scars of the broader downtrend. ETH remains below the 100-day and 200-day moving averages, and both are still sloping in a way that favors sellers on the higher timeframe. The descending structure from the prior months also remains intact, so the market is not out of danger yet.

Even so, the picture has improved at the margin. Ethereum has spent several weeks defending the $1,800 zone and has now pushed back toward the $2,150 short-term resistance area again. If that ceiling breaks, the next upside region to watch sits around $2,300 to $2,400, while the much larger barrier remains near $2,800. On the downside, losing the $1,800 support cluster would weaken the recovery thesis considerably and likely lead to another round of decline capitulation.

ETH/USDT 4-Hour Chart

On the 4-hour chart, ETH looks more constructive than it does on the daily. The market has been printing a sequence of higher lows from the February bottom, and the rising trendline underneath the price shows that dip buyers are still active. That does not guarantee a breakout, but it does show that the short-term structure is leaning upward rather than flat or weak.

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What matters now is the repeated test of $2,143. The asset has reached that level several times, which usually makes the next reaction important. A decisive move through it could trigger a fast push into the next supply zone around $2,400 and possibly higher. Another rejection, however, would likely keep ETH rotating sideways and send it back toward the trendline and the $1,800 support area.

Sentiment Analysis

Funding data shows that sentiment is no longer fearful, but it is not overheated either. Rates are mostly positive, which means long positioning is present, and traders are generally leaning bullish, yet the readings are still relatively moderate compared to the stronger speculative phases seen in the past.

That is usually a healthier backdrop than an aggressively crowded long market. In other words, sentiment is supportive, but not euphoric. This gives ETH room to extend higher if price confirms with a breakout, though it also means the market still needs spot follow-through rather than relying purely on leveraged optimism.

 

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Bitcoin Beats US Stocks as Strategy’s STRC Hints at a $776M BTC Purchase

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Bitcoin Beats US Stocks as Strategy's STRC Hints at a $776M BTC Purchase

Bitcoin (BTC) is on track for its strongest weekly gain since September 2025, defying a broader risk-off backdrop driven by the escalating US and Israel-Iran war.

Key takeaways:

  • Strategy raised $776 million this week, which could lead to the purchase of over 11,000 BTC.

  • US Bitcoin ETFs had $767 million in inflows in the same period.

STRC hints at $776 million in Bitcoin buying power

As of Saturday, BTC/USD had risen more than 7% over the past week to around $70,625. Over the same period, the benchmark S&P 500 (SPX) was down 1.60%.

BTC/USD vs. SPX weekly chart performance. Source: TradingView

The divergence came as STRC.LIVE estimates indicated that Strategy may have raised enough cash through at-the-market sales of its STRC instrument this week to buy more than 11,000 BTC.

At current prices, that would amount to roughly $776 million in Bitcoin.

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STRC weekly data (March 9–13). Source: STRC.LIVE

STRC is Strategy’s exchange-traded income-paying instrument that helps it raise investor cash for Bitcoin buys. When it trades at or above its $100 par value, Strategy can issue more shares and turn that demand into fresh BTC-buying capital.

Related: Bitcoin ‘passing geopolitical stress test’ as BTC price spikes above $72K

Last week, Strategy had purchased 17,994 BTC, equivalent to about $1.28 billion at that time. About 30% of the BTC allocation was funded by STRC sale proceeds.

Bitcoin’s price was also boosted by US spot Bitcoin ETFs, which attracted $767 million in net inflows across five straight trading days, reflecting growing demand for BTC despite the Middle East crisis.

Bitcoin gains during geopolitical crises

In the past, Bitcoin has experienced selloffs at the start of major geopolitical conflicts, only to recover and deliver larger gains.

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In February 2022, Russia’s invasion of Ukraine caused an initial dump, but was followed by a 40% BTC price rally, as shown below.

BTC/USDT weekly price chart. Source: TradingView/Ted Pillows

A similar sequence played out after Israel’s June 2025 strikes on Iran. Bitcoin dipped in the immediate aftermath, then flipped higher, gaining about 25% over the next two months.

During the January 2020 US–Iran flare-up after General Qasem Soleimani’s killing, Bitcoin rose more than 50% overall, even though the first reaction included a brief price drop.

BTC/USD daily price chart. Source: TradingView

Bitcoin price may rise further if history is any indication, with macro models hinting at an escalation toward $100,000 in the coming months.

Bear flag keeps BTC’s downside risks intact

Conversely, a bear flag formation on the Bitcoin chart increases the likelihood of a bull trap.

Bear flags form when the price rises inside an ascending, parallel channel after a strong downtrend. They usually resolve when the price breaks below the lower boundary and falls by as much as the previous downtrend’s height.

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As of Saturday, Bitcoin showed signs of upside exhaustion near the flag’s upper boundary, also aligning with the 50-day exponential moving average (50-day EMA, the red line) at around $72,750.

BTC/USD daily price chart. Source: TradingView

Applying the bear flag principle to Bitcoin’s chart places the measured downside target at around $51,000.