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Brazil Proposes Ban on Stablecoin Withdrawals to Wallets
Market Musing-g

Brazil Proposes Ban on Stablecoin Withdrawals to Wallets

The Crypto Times
By The Crypto Times
3 months ago
2 mins read
Brazil Proposes Ban on Stablecoin Withdrawals to Wallets

The Central Bank of Brazil (BCB) has introduced a regulatory proposal that could change how people use stablecoins. The proposal would prevent users from withdrawing stablecoins to self-custodial wallets on centralized exchanges. 

This means that only certain transfers of stablecoins—referred to as “tokens denominated in foreign currencies”—will be allowed between residents in cases where Brazilian law already permits foreign currency payments.

The BCB says this move is part of its plan to regulate the growing digital asset market in the country, in line with the crypto regulation law passed in December 2022. The central bank also aims to ensure that Brazil’s financial system adapts to the new reality of digital assets while protecting international capital flows.

The public consultation for the proposal is open until February 28, 2025. During this time, market participants can share their feedback with the regulator, though the BCB is not bound to follow all suggestions.

This proposed regulation would also require centralized exchanges to obtain a foreign exchange license to offer services related to stablecoins. Furthermore, crypto transactions—both inbound and outbound—would be regulated the same way as traditional investments, with compliance required for activities like foreign investment or crypto capital abroad.

Stablecoins are already a significant part of Brazil’s crypto market. According to Brazil’s Internal Revenue Service (RFB), Brazilians transferred $4.2 billion in crypto in September, with stablecoins accounting for a large portion—around $3 billion, mostly in Tether USD (USDT).

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