- Latoex has now sold its assets and digital token to other companies to compensate for the losses and has paid the remaining to the users as their withdraw funds.
- The companies which have not complied with this agreement have faced heavy charges in the form of fines.
This year, Brazil has formulated new tax rules to its government and private firms which have made the majority of the local Cryptocurrency companies shut down their operations.
Brazil’s two of the largest cryptocurrency Acesso Bitcoin and Latoex have given confirmation that they have closed their head offices and terminated all crypto and related businesses post the New Tax Rules.
The companies also shared that their trading volumes have deliberately fallen down. The companies have also called their investors and traders to withdraw their stored funds for their head offices.
The companies reported that they cannot put new schemes to their market trades which followers the rules put forth by the tax authorities and are now forced to terminate the operation.
Latoex has now sold its assets and digital token to other companies to compensate for the losses and has paid the remaining to the users as their withdraw funds.
However, as there are no regulations or a governing body for the use of cryptocurrency trading and holding in Brazil or in most of the countries as we know but all the trading and transaction activities are to be submitted to the Federal Budget Secretariat (FBS) of the Federal Revenue Department.
The companies which have not complied with this agreement have faced heavy charges in the form of fines, and this also stands as a warning to the current companies who fail to achieve the same.
The previous bills submitted to the senate by the country’s lawmakers are still under discussion whether to regulate the cryptocurrency in the country. The lawmakers have proposed several bills to achieve different levels of regulation surrounding the cryptocurrency activities.
Previously European cryptocurrency firms have also terminated their services due to the similar passing of bills to tighten the grip on regulations surrounding the cryptocurrencies.