Brazil has ended its cryptocurrency tax exemption for small traders, implementing a flat 17.5% tax rate on all crypto gains. The new policy applies to both self-custody holdings and offshore investments, marking a significant shift in the country's crypto taxation approach. Previously, smaller traders were exempt from reporting gains below certain thresholds. The change aligns Brazil with global trends of increasing crypto taxation as digital asset adoption grows. Authorities aim to standardize taxation across all investor categories while expanding oversight of crypto transactions. The 17.5% rate remains below Brazil's maximum income tax bracket of 27.5%.