Is receiving USDT on MetaMask illegal? The Brazilian Central Bank plans to prohibit the withdrawal of stablecoins to self-custody wallets.

Brazil's proposed ban on self-custody wallets for stablecoins may trigger an uncontrollable wave of decentralization. While Brazil's stablecoin ban aims to control the market, it could actually foster a stronger trend towards decentralization, accelerating users' departure from regulated platforms. (Background: The Brazilian Central Bank plans to 'limit users from withdrawing stablecoins from CEX to personal wallets', leading to a rapid depreciation of the local currency against USDT?) (Additional context: A Brazilian senator has proposed to 'include Bitcoin in the national reserve': planning to invest $17.7 billion to stockpile BTC) On November 29, the Central Bank of Brazil (Banco Central do Brasil, BCB) proposed a regulatory draft that plans to prohibit the transfer of stablecoins (such as Tether's USDT) to self-custody wallets (like MetaMask, Trezor). The aim is to limit stablecoin transactions from leaving local regulated platforms, avoiding the threat of uncontrolled peer-to-peer (P2P) transactions to Brazil's financial stability. The exchange rate of the Brazilian real (BRL) against the US dollar has been hitting historic lows. Currently, the use of stablecoins in Brazil is increasing year by year. Due to the continuous depreciation of Brazil's local currency, the real, many citizens view stablecoins as a safe haven against asset depreciation. The BCB stated that this proposal aims to conclude public consultations by February 2024, with implementation potentially as early as 2025. Is the ban really effective? However, the industry generally questions the actual effectiveness of this ban. Lucien Bourdon, a Bitcoin analyst at Trezor, stated that while the government can impose regulations on centralized exchanges, its control over P2P transactions and decentralized platforms is extremely limited. Bourdon said: 'This ban will only block some novice users from entering the market, but for users familiar with the crypto ecosystem, they can still trade through P2P or decentralized platforms, possibly accelerating their departure from centralized platforms.' The trend of decentralization may be difficult to curb. Industry experts expect that this ban in Brazil may have similar consequences to policies in countries like China and Nigeria, leading users to flock to decentralized solutions. Carol Souza, founder of Area Bitcoin, stated that such restrictions are not only difficult to stop P2P transactions but may also promote the application of new stablecoin technologies on decentralized platforms, such as Taproot Assets and Liquid Network based on Bitcoin Layer 2. She said: 'The advancements in these technologies mean that the government's regulatory measures may backfire, even accelerating the development of decentralization.' Tether's response: cooperation is more effective than confrontation. As one of the most influential stablecoin issuers in the world, Tether expressed concern about the potential impact of this policy. Tether CEO Paolo Ardoino emphasized that Brazil is one of the highest markets for USDt usage in Latin America, and the stability of stablecoins is crucial for consumers in Brazil's turbulent economic environment. He believes that only thoughtful policies can support Brazil's leadership in the digital asset space. Ardoino stated: 'We are willing to cooperate with Brazilian authorities to seek a regulatory balance that protects consumers while promoting innovation.' Related reports: The Brazilian Central Bank plans to 'limit users from withdrawing stablecoins from CEX to personal wallets', leading to a rapid depreciation of the local currency against USDT? A Brazilian senator has proposed to 'include Bitcoin in the national reserve': planning to invest $17.7 billion to stockpile BTC. Brazil orders a nationwide ban on X (Twitter)! Musk angrily criticizes the trampling of free speech, what's going on? 'Is receiving USDT on MetaMask illegal? The Brazilian Central Bank plans to prohibit the withdrawal of stablecoins to self-custody wallets.' This article was first published on Dongqu Blockchain (Dongqu Dongqu - the most influential blockchain news media).