Brazil’s tax revenue service plans to revisit requiring fintechs to report transactions, citing concerns over money laundering risks.

Robinson Barreirinhas, the head of the agency, indicated that while the tax agency has tools for tracking financial activities, these capabilities are not currently applied to fintechs.

Proposed regulations for fintech companies were suspended last year after facing public opposition.

A regulation introduced in September 2023 aimed to align fintech reporting with banks, but backlash led to its delay in January 2024.

Barreirinhas also warned that organized crime in Brazil is linked to smuggling, cryptocurrencies, and online betting.