The country’s central bank, Central Bank of Brazil (BCB)has proposed new rules that stop transfers of stablecoins, such as Tether’s USDT
USDT
$0.9969
to self-custodial wallets.
Announced on November 29, the proposal is still a draft and will remain open for public comment until February 28, 2025.
The idea behind this is strengthen control over foreign currency transactions and monitor more closely Brazilian money leaving the country.
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The proposal includes a rule that establishes:
The virtual asset service provider is prohibited from transferring virtual assets denominated in foreign currency to a self-custody wallet.
Since January, The Brazilian real has lost more than 23% of its value against the dollar.and the exchange rate reached a historical maximum of 6.09 reais per dollar on November 29.
Many Brazilians have turned to stablecoins like USDT to protect their savings as the real continues to lose value.
This decision is part of a broader plan to update existing laws from 2022 that deal with companies offering crypto services. The central bank wants to expand the rules for the foreign exchange market to include cryptocurrency-related activities, such as payments, sales, custody and transactions linked to foreign currencies.
btc
$100,917.39
Co-founder Carol Souza expressed her frustration at X, saying“They are closing the exits while the BRL plummets.”
As Brazil tightens its control over cryptocurrency use, the global conversation around digital assets and their regulation continues to heat up. In South Korea, authorities are tackling a different crypto challenge: tax evasion. How did Paju City respond to the asset seizures? Read the full story.
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