Central Bank of Brazil, BCB has announced a new regulatory proposal which prohibits users from withdrawing their stablecoins in self-custodial Wallets.
According to the public consultation notice, the transfer of stablecoins — called “tokens denominated in foreign currencies” — between residents would be restricted in cases where Brazilian law already allows payments in foreign currencies.
BCB released a press release:
“The initiative reflects our commitment to adapting the financial system to the realities of digital assets while safeguarding the integrity of international capital flows.”
This move is part and parcel of the Bill cryptoregulation The BCB was given the responsibility to create the regulations for the cryptocurrency industry in Brazil.
Participants to the market can express their opinion with the regulator until 28 February 2025. BCB has the right to override any inputs made by market participants and act as described in this document.
Regulations for balancing
The Brazilian central bank has proposed new rules that aim to increase legal certainty and promote competition on the foreign exchange markets.
The proposed regulations outline three main activities of virtual asset providers that operate in the foreign currency market. These include facilitating payments and transfers internationally via cryptocurrency, offering exchange and custody services to tokens denominated by Brazilian Reis for nonresidents, as well as managing transactions for tokens backed with foreign currencies.
In addition to this, all crypto-related investments, both inbound and outside, would have the same regulations as conventional investments. The international capital regulation would apply to crypto investments abroad, as well as external credits, foreign direct investment and Brazilian capital.
In the consultation process, central exchanges will also need to obtain a license for foreign exchange in order to provide services related with stablecoins.
A significant market
According to data from Brazil’s Internal Revenue Service (RFB) Published: In September, nearly 4,2 million Brazilians sent $4.2 Billion in cryptocurrency.
Stablecoins accounted for 71.4%, or $3 billion in value. Brazilian investors moved $2.77bn in Tether USD.
Posted In: Tether, Brazil, Crypto, Featured, Regulation, Stablecoins Author 
Gino Matos
Gino is a journalist and law graduate with 6 years’ experience. Ses expertise is mainly focused on developments within the Brazilian Blockchain ecosystem, and in Decentralized Finance (DeFi).
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Assad Jafri
AJ is a dedicated journalist who has spent over a decade honing his craft in various countries. He specializes in financial reporting and now concentrates on cryptocurrency.
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