The Central Bank of Brazil (BCB) is exploring new regulation that could significantly change the landscape of Cryptocurrency transactions in the country. On November 29, the BCB launched a public consultation proposing to veto transfers of stablecoins, such as Tether’s USDT, to self-custody wallets such as MetaMask.
“The virtual asset service provider is prohibited from transferring virtual assets denominated in foreign currency to a self-custody wallet,” the regulation states. proposal of the BCB. This measure, included in a regulatory draft, It will have a consultation period open until February 28, 2025.
This ban responds to the interest of the Brazilian government to strengthen the supervision of the exchange market and control the flow of Brazilian capital abroad. According to the consultation document, the initiative seeks to modify 2022 resolutions on virtual asset service providers (PSAV) in the exchange market.
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The BCB proposal is in public consultation until February. Source: BCB.
The central bank also proposes expanding the definition of the foreign exchange market to include activities such as payments, sales, custody and transactions in cryptocurrencies denominated in foreign currency. This regulation would force PSAVs to present to the BCB Detailed information about customer verificationthe transferred values and other relevant data of the operations.
The importance of this proposal lies in the growing use of stablecoins in Brazil. These cryptocurrencies, which maintain a stable value linked to a fiat currency such as the dollar, They have gained popularity for their stability compared to other volatile cryptoassets.
The recent arrival of USDC to Brazil and Mexico through local bank transfers, announced by the company Circleunderlines this boom. Circle has indicated that its stablecoin is now is available through the national real-time payment systems of both countriesfacilitating faster and more secure transactions.
Now, while transactions in cryptocurrencies are subject to strict identity verifications under the know-your-customer (KYC) protocol on centralized exchanges, Bitcoin-criptomonedas-semilla-hardware-seguridad/” target=”_blank” rel=”noreferrer noopener”>self-custody wallets offer a level of anonymity and control which does not require the presentation of personal information for the mobility of funds.
This aspect is crucial in the context of the public consultation of the Brazilian central bank, since self-custody wallets allow Users have full control over their digital assets without intermediarieswhich is seen by some as a form of financial freedom and by others as a gap in financial regulation.
The BCB proposal reflects a global trend towards stricter regulation of cryptocurrenciesespecially in how these affect the internal economy and international transactions.
Brazil, being one of the most dynamic markets in Latin America for cryptocurrencies, is taking measures to ensure that financial innovation does not compromise economic stability or the safety of its citizens.
This article was created using artificial intelligence and edited by a human Editor.
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