🌐 Brazil's Central Bank May Ban Stablecoin Withdrawals, Adding Uncertainty to Cryptocurrency Regulation
The Central Bank of Brazil (BCB) has proposed a new regulatory measure that could prohibit users from withdrawing stablecoins from centralized exchanges to personal wallets, a move that has sparked significant reactions in the cryptocurrency community.
If this proposal is implemented, it would be a major disaster for the cryptocurrency sector, as it would limit Brazilian users' ability to transfer stablecoins to personal wallets, potentially having a significant impact on the free circulation of cryptocurrencies and personal asset control.
Since the cryptocurrency regulatory bill was passed last December, the Central Bank of Brazil (BCB) has been actively working on the formulation of relevant rules. The public consultation phase will last until February 2025, providing market participants with an opportunity to express their opinions.
Despite the ongoing public consultation, the Central Bank of Brazil (BCB) has indicated that they have the authority to establish rules based on their judgment, meaning that even after the public consultation period ends, public opinions may not be fully accepted.
According to data released by the Brazilian Federal Revenue (RFB) on November 13, nearly 4.4 million people in Brazil engaged in cryptocurrency transactions in September, with a total value of $4.2 billion. Among these transactions, stablecoins dominated, accounting for 71.4% of the total transferred value for the month, with transaction amounts around $3 billion.
Among stablecoins, the most popular was Tether USD (USDT), through which Brazilian investors transferred $2.77 billion. This data illustrates the activity in Brazil's cryptocurrency market and the important role of stablecoins within it.
🗣️ Opinion:
The cryptocurrency market does need reasonable regulation to ensure its stability and security, but if the regulatory measures are too strict, it could stifle innovation, which would be detrimental to the long-term healthy development of the market.
In summary, the purpose of regulation is to promote market stability and innovation, not to restrict its growth. Therefore, regarding the ban proposed by the Central Bank of Brazil, I personally feel it may be too strict.
💬 What do you think about this move by the Central Bank of Brazil? Do you think this is credible? Or do you have better regulatory suggestions?