Brazil's Central Bank Proposes Restrictions On Stablecoin Transfers

According to PANews, the Central Bank of Brazil (BCB) has unveiled a regulatory proposal that would prohibit centralized exchanges from allowing users to withdraw stablecoins to self-custody wallets. This proposal is part of a broader effort to regulate the cryptocurrency sector in Brazil, following the approval of a crypto regulatory bill in December 2022. The bill designates the BCB as the authority responsible for establishing rules for the country's crypto industry. The proposal, detailed in a public consultation notice, aims to restrict the transfer of stablecoins, referred to as 'tokens denominated in foreign currency,' between residents. This comes despite Brazilian law already permitting payments in foreign currency. The public consultation period will remain open until February 28, 2025, allowing market participants to share their opinions with the regulatory body. However, the BCB retains the authority to disregard public feedback and proceed as outlined in the document.