Crypto staking – how it works and taxation

The popularization of crypto assets – cryptographically protected virtual assets linked to a blockchain – has led to the emergence of several mechanisms that have refined their operations. Among them, the “staking” stands out.

Offered by several exchanges, it is a mechanism through which a user locks their cryptocurrencies, in order to participate in the execution of the blockchain (platform), contributing to its security. In exchange for such “lock”, the user earns rewards and/or benefits related to their cryptocurrencies, calculated in percentage yields.

Thus, “staking” is a way to profit from cryptocurrencies without trading them directly. On June 24, the Federal Revenue Service published Consultation Solution No. 184 (available here), clarifying the income involving the temporary assignment of crypto assets – exactly the “staking”.

In this sense, the consideration for the temporary assignment of fungible crypto assets to the legal entity domiciled in Brazil (custodian) is now subject to taxation by the Income Tax exclusively at source (IRRF). Thus, the remuneration must be made by the paying source exclusively in the month in which the income is received. In addition, the income paid in crypto assets must be evaluated at the market value it has on the date of receipt, regardless of the occurrence of the effective withdrawal in fiat currency.

Regarding individuals, the capital gain calculated on the sale of cryptocurrencies held in custody and/or traded in Brazil must also be taxed by the IRPF. This will occur even in cases where cryptocurrencies are directly used for the acquisition of others, and even if the one used for the acquisition is not previously converted into real or other fiat currency.

However, there is a hypothesis of exemption: when the total value of the sale of the cryptocurrency, in a month, of all types of crypto assets or virtual currencies, is equal to or less than R$ 35 thousand.