Stablecoin
Users Alert:
Brazil Eyes
Ban On Withdrawals
To Self-Custody Wallets
Stablecoin Users Alert: Brazil Eyes Ban On Withdrawals To Self-Custody Wallets
by Christian Encila
3 minutes ago
in Crypto News
0
As part of its efforts to keep up with changes in the financial world, the
Brazil Central Bank (BCB) wants new rules on virtual currencies, especially
stablecoins. The Central Bank said in a press release on November 29 that
there would be a public consultation notice with a plan on how to regulate
virtual asset service providers (VASs). The notice also listed situations that
international capital regulations will cover.
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A key rule in the new proposal is to disallow centralized exchanges from
letting customers to withdraw their stablecoins to self-custodial wallets.
This latest development is part of BCB’s Stablecoin Withdrawal Ban , which
aims to comply with tightening financial regulations.
BCB Works To Comply With Changing Regulations
In a press release and consultation notice, the central bank will soon
restrict the transfers of stablecoins or tokens in foreign currencies between
locals in situations where existing Brazilian laws already permit payments in
a foreign currency.
In a statement, BCB shared that the proposal is a testament• Государство » Законы и право » Законодательство » Юридические документы » Завещание to its commitment
to complying with the changing realities in the digital asset landscape while
protecting the integrity of global capital flows.
As contained in its crypto law passed last December 2022, the new plan lets
the BCB monitor the digital currency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта sector. Interested parties are free to
offer their opinions and views until February 28, 2025.
Image: Rootstock
The central government stays as the last arbiter and enforcer of the new
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта rules even while the public can offer their recommendations. On
the official website of the central bank, interested parties may access the
complete proposal including guidelines on crypto providers on the withdrawal
restrictions on stablecoins.
Other Things To Expect From New Crypto Proposal
According to BCB’s updated proposal, all cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта investments will be
covered by existing regulatory standards that apply to traditional
investments. For example, direct foreign investments, external credit, and
Brazilian capital in cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта need to comply with the current internal
capital regulations.
Under the proposal, centralized exchanges must apply for foreign exchange
licenses before offering services related to stablecoins. Total crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
cap currently at $3.3 trillion. Chart: TradingView
Stablecoin Limits To Regulate The Industry
Limitations on stablecoin withdrawals highlight the expanding impact of
digital assets. The Internal Revenue Service (IRS• Экономика » Экономика США » Служба внутренних доходов США
• Государство » Государственное устройство США » Служба внутренних доходов США
• Соединённые Штаты Америки (США) » Экономика США » Служба внутренних доходов США
• Соединённые Штаты Америки (США) » Государственное устройство США » Служба внутренних доходов США
• Объект организация » Организации по алфавиту » Организации на на » Служба внутренних доходов США) of the nation claims that
stablecoins account for almost three-quarters of $4.2 billion in September
crypto transactions.
Aside from withdrawal limits, Brazil’s central bank calls for stricter rules
for digital asset companies. By subjecting these companies to investment
standards, users will be protected, and operations can comply with
international capital regulations.
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Million Art Purchase
The latest move from the Brazil central bank underscores the government’s
appreciation of the importance of digital assets and the need to guarantee
financial stability.
Featured image from DALL-E, chart from TradingView