The Brazilian Central Bank recently released a regulatory proposal that plans to prohibit centralized exchanges from allowing users to withdraw stablecoins to self-custody wallets.😮 This means that in Brazil, transfers of stablecoins between residents will be restricted, even though the law has already allowed payments in foreign currencies.

This proposal is part of Brazil's cryptocurrency regulation bill from December 2022, which clarifies the role of the Brazilian Central Bank in setting rules for the cryptocurrency industry. Public consultation will last until February 28, 2025, during which market participants can share their opinions. However, the Brazilian Central Bank has the authority to override these opinions and proceed according to its own plans.🔍

This proposal could have far-reaching impacts on Brazil's cryptocurrency market, and investors and traders should closely monitor developments.📊