The Central Bank of Brazil (BCB) has proposed a new rule that would stop users of centralized exchanges from moving stablecoins to self-custodial wallets. This means that people would not be able to transfer certain tokens to their own wallets if the new rule is accepted. This proposal is part of a bigger plan to regulate cryptocurrencies in Brazil, which was approved in December 2022.
The BCB is responsible for creating the rules for the crypto industry in Brazil. The new rules are being discussed until February 28, 2025, and people can share their opinions with the BCB. However, the BCB can decide what to do without having to follow everyone’s opinions. The Brazilian central bank says that these new rules are meant to make things clearer for businesses and individuals while also making the foreign exchange market more competitive and efficient.
The proposed regulation includes three main activities for virtual asset service providers in the foreign exchange market: helping with international payments and transfers using crypto, providing exchange or custody services for tokens tied to the Brazilian real for non-residents, and managing transactions involving tokens tied to foreign currencies.
In addition, all crypto investments, whether coming into Brazil or going out, would have the same rules as traditional investments. External credit, direct foreign investment, and Brazilian capital abroad involving crypto would also need to follow existing international capital regulations. Under the public consultation, centralized exchanges would also need to get a foreign exchange license to offer stablecoin-related services.
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<p>The post Brazil’s Central Bank Proposes Restrictions on Stablecoin Withdrawals to Self-Custodial Wallets first appeared on CoinBuzzFeed.</p>