Brazil’s central bank has officially released much-anticipated guidelines aimed at regulating the country’s cryptocurrency market, with a primary focus on curbing the rising incidences of scams and money laundering activities.
This move comes in the wake of the legal framework for cryptocurrencies that was approved in 2022, which had been contingent on the central bank’s additional regulatory measures. Over the past months, the central bank conducted four public consultations to gather input on the new rules.
These regulations are set to take effect in February 2026 and will encompass authorization processes for foreign-exchange and securities brokers, as well as for distributors and virtual-asset service providers.
This classification also extends to international payments or transfers involving crypto assets, including transactions made to settle obligations via electronic payment methods or cards.
However, the Bank has also proposed capping the amount of stablecoins that individuals and businesses can hold, a move that differentiates it from the regulatory approaches being taken by the European Union (EU) and US authorities.
The Bank has indicated that it is open to feedback and has made adjustments to its proposals based on stakeholder input, particularly regarding the interaction between stablecoin issuers and the Bank.
Meanwhile, the Bank of England is also considering the possibility of providing central bank liquidity facilities to systemic stablecoin issuers during periods of market stress, offering a safety net if these issuers struggle to liquidate their reserve assets in the private market.
Featured image from DALL-E, chart from TradingView.com
