Brazilian Companies Break Crypto Purchasing Records

Brazilian Companies Break Crypto Purchasing Records

Key Insights

  • The Federal Revenue of Brazil reported an all-time increase in crypto operations. 
  • The October RFB reports showed that about 42,000 companies purchased one or more cryptocurrencies.
  • The majorly owned crypto tokens include BTC, BRZ, USDC, and ETH.

The Brazilian tax authority reported that institutions have (again) broken crypto purchasing records in the country. According to the organization, almost 42,000 companies purchased one or more cryptocurrencies in October. 

You would recall a record set in September when about 40,161 declared having purchased crypto.

Brazil
Brazil

Furthermore, the Federal Revenue of Brazil (RFB) report showed that companies continue to buy Bitcoin. They also report revealed that these companies have been buying and holding — as part of their treasuries, taking advantage of the low prices that the market presents. 

More so, experts and industry players link the influence of the recent demise of FTX. You would recall that FTX, one of the biggest cryptocurrency exchanges, collapsed.

However, amidst this collapse, the companies continued to stockpile crypto purchases.

Significantly, this purchasing record is the highest since 2019, when the Federal Revenue Service of Brazil began data collection from investors. 

Individual Crypto Purchase Decreased

Recently, crypto purchases have increased in Brazil. In the October data released by RBF, the Brazilian tax authority and body empowered by law to receive crypto purchasing statements from taxpayers. 

However, while the number of companies holding crypto increased, the number of individuals fell during the same period. That is, 1.5 million citizens purchased crypto back in September, while the number dropped to 1,265,818 in October.

The decline in the figure for individual operations is considered the lowest since June 2022. The report showed that male ownership of cryptocurrencies decreased— while women were responsible for about 20% of crypto operations. It is considered the highest female participation level of all time. 

Similarly, the Federal report showed that August figures are five times higher than August 2019. That is a year after; there are now five folds firms that own crypto. This August record surpassed June 2022, when 11,797 companies bought digital assets. 

This increase began when companies reported their crypto movements to the tax authority. 

Conclusively, the report added that firms in the country collectively hold 10.9 billion Brazilian reals in crypto, equivalent to $2.1 billion.

How Cryptocurrencies Fared in Brazil?

The Federal Revenue Service data for October showed how some major cryptocurrencies fared in the market. The report showed that in October 2022, Bitcoin had the highest number of operations among Brazilians.

Tether (USDT) holds the largest total volume of operations in the country.  Almost $1.8 billion were transacted using USDT in almost 119,366 operations, followed by Bitcoin with 1.34 million.

Similarly, nationals invested in the Brazilian Real Stablecoin (BRZ) before the FTX collapse.

Significantly, the highest trading of the BRZ was on the FTX exchange. Other tokens that accounted for large Brazilian investments include ETH and USDC.

Brazil and crypto
Brazil and crypto

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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