Brazil’s central bank (BCB) is proposing some big changes to how stablecoins are handled in the country. They’re aiming to tighten regulations around crypto, especially stablecoins, to keep up with the fast-changing world of finance.
No More Self-Custody?
The biggest change? The BCB wants to stop centralized crypto exchanges from letting people withdraw their stablecoins to their own personal wallets (self-custody). This is a key part of their plan to better control stablecoin usage.
Why the Changes?
The BCB says these new rules are all about complying with international financial regulations and protecting the integrity of global money flows. They also want to keep a closer eye on the crypto market, something their new crypto law from December 2022 allows them to do.
What Else is Changing?
The proposed changes aren’t just about withdrawals. Here’s what else is on the table:
- All crypto investments will be treated like traditional investments:
This means they’ll have to follow the same rules as other investments. - Exchanges need licenses: Centralized exchanges will need special licenses to deal with stablecoins.
- Stricter rules for crypto companies: The BCB wants to make sure these companies follow stricter rules to protect users and comply with international regulations.
Public Input Needed
The BCB is asking for public feedback on these proposals until February 28, 2025. You can check out the full proposal on their website. Ultimately, the government will have the final say.
The Bigger Picture
This move shows that Brazil is taking digital assets seriously. They recognize the growing importance of crypto and the need to keep things stable and safe. The BCB’s actions highlight the increasing global focus on regulating the cryptocurrency market.
