Brazil’s central bank has officially released much-awaited guidelines aimed at regulating the country’s cryptocurrency market, with the primary focus being to curb the rising incidence of scams and money laundering activities.
The move comes in the wake of the legal framework for cryptocurrencies being approved in 2022, which was contingent on additional regulatory measures from the central bank. Over the past months, the central bank held four public consultations to gather input on the new rules.
New crypto guidelines in Brazil
In a recent press conference, the central bank’s director of regulation Gilneau Vivant said, Stressed on The new rules are designed to reduce opportunities for abuse of virtual asset markets for scams, fraud and money laundering.
These rules are scheduled to take effect in February 2026 and will include authorization processes for forex and securities brokers as well as distributors and virtual-asset service providers.
According to the statement released on the official website of the central bank, any purchase, sale or exchange of crypto assets pegged to fiat currencies, or commonly known as fiat currencies. stable coinswill now be classified as foreign exchange operations.
This classification also extends to international payments or transfers involving crypto assets, including transactions made to settle obligations via electronic payment methods or cards.
Additionally, the new guidelines will enhance existing rules on customer protection, transparency, etc. anti money laundering efforts, ensuring that virtual-asset service providers adhere to the same standards as traditional financial institutions.
UK Central Bank Stablecoin Advance
In parallel, the Bank of England announced A proposal that allows issuers of widely used stable coins to invest up to 60% of their backing assets in government debt. It marks a potential change in the bank’s approach towards the sector, as it plans to introduce new rules next year.
However, the bank has also proposed limiting the amount of stablecoins that can be held by individuals and businesses, a move that differentiates it from the regulatory approach being taken by the European Union (EU) and US authorities.
Sarah Breeden, the Bank of England’s deputy governor for financial stability, highlighted that these proposals represent an important step towards establishing an stablecoin framework In Britain.
The Bank has indicated that it is open to feedback and has made adjustments to its proposals based on stakeholder input, particularly with respect to interactions 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.
Display image from DALL-E, chart from tradingview.com
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