According to Cryptoslate, the Central Bank of Brazil (BCB) has announced a regulatory proposal that prohibits centralized exchanges from allowing users to withdraw stablecoins to self-custody wallets. According to the public consultation notice, the transfer of stablecoins (referred to as 'foreign currency-denominated tokens') between residents will be restricted in situations where Brazilian law already allows payment in foreign currency. This move is part of the crypto regulatory legislation approved in Brazil in December 2022, which establishes that the BCB is responsible for setting the rules for the country's crypto industry. The public consultation will last until February 28, 2025, allowing market participants to share their opinions with the regulators. However, the BCB can override opinions and act as described in the document. According to the public consultation, centralized exchanges must also obtain a foreign exchange license to provide stablecoin-related services.