According to PANews, the Central Bank of Brazil (BCB) announced regulatory proposals that prohibit centralized exchanges from allowing users to withdraw stablecoins to self-custody wallets.
According to the public consultation notice, Brazilian law allows payment in foreign currency, but transfers of stablecoins between residents will be restricted.
This move is part of Brazil's cryptocurrency regulatory framework from December 2022, with BCB responsible for setting rules for the crypto industry. The public consultation is open until February 28, 2025, allowing market participants to share their opinions, but BCB can overturn opinions and act according to the document.