Brazil targets stablecoins with new crypto rules treating them as foreign exchange
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Brazil has unveiled a crypto framework that places stablecoins under foreign exchange oversight.
Brazil’s central bank, the Banco Central do Brasil (BCB), unveiled the regulations on Nov. 10, covering a spectrum of activities that would otherwise have remained outside the scope of traditional financial supervision.
Brazil to regulate stablecoin use
Regulators have specifically focused on stablecoins due to their rapid adoption in Brazil’s payment landscape.
Around 90% of local crypto activity involves stablecoins, according to BCB President Gabriel Galipolo.
Even though stablecoins offer faster and cheaper means of transactions, they have often been associated with tax evasion and money laundering risks, and that seems to have prompted authorities to reclassify them under foreign exchange oversight.
Any transaction involving stablecoins, whether for purchasing goods, remitting money abroad, or converting between digital and fiat currencies, will be treated as a foreign exchange operation.
These activities will now fall under the purview of licensed FX institutions and the newly defined SPSAVs with certain caps in place.
Transfers involving unlicensed foreign counterparties will be limited to $100,000 per transaction and must be accompanied by relevant documentation to verify source and purpose.
Stablecoin transfers to or from self-custodied wallets are also included under the new framework, provided a service provider is involved in the transaction.
Rather than banning self-custody outright, the rules require regulated platforms to identify the wallet’s owner and conduct due diligence on the origin and destination of transferred assets.
Consumer protections
The rules, set to take effect on Feb. 2, 2026, also introduce a new licensing category for virtual asset service providers, dubbed Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs).
Those classified as SPSAVs will have to secure proper licensing and adhere to strict reporting and other obligations similar to how traditional institutions are regulated in Brazil.
Under the mandates, crypto service providers must implement consumer protection measures, conflict of interest safeguards, and detailed customer disclosures.
“The objective is to provide greater efficiency and legal certainty to these operations, avoid potential regulatory arbitrage, and safeguard national statistics and accounts that may be affected by these operations,” the BCB said.
Additional elements of the framework include mandatory reporting of cross-border and capital-market transactions beginning May 4, 2026.
Stablecoin regulations across the globe
Ever since the United States unveiled the GENIUS Act earlier this year, several other nations have fast-tracked efforts to regulate the booming stablecoin sector that has largely been dominated by dollar-backed stablecoins.
As previously reported by Invezz, Stablecoin transactions surged over 70% in the months following the GENIUS Act’s passage.
To counter US dominance in the stablecoin sector, countries all across the globe are pushing for their own native alternatives that can anchor domestic payments, reduce reliance on dollar-backed tokens.
Last month, South Korean regulators issued a warning about the risks involved with stablecoins and urged traditional banks to come forward and take the lead in ensuring monetary trust.
South Korea is currently running a pilot called Project Hangang, which is testing bank-issued stablecoins within a controlled blockchain network.
South Korea’s Financial Services Commission is also expected to submit a new stablecoin framework to the National Assembly before year-end.
More recently, the Bank of England published a consultation on stablecoin regulation on Nov. 10.
Brazil’s Bitcoin reserve plans
Against this backdrop Brazil is also exploring the idea of holding Bitcoin in its national reserves.
Officials are set to attend the Central Banking Autumn Meetings in Rio de Janeiro this month, where reserve managers from across Latin America will examine the potential role of Bitcoin in sovereign wealth strategies.
Prior legislative hearings have already floated the possibility of a $19 billion sovereign Bitcoin reserve, with lawmakers positioning the asset as both an inflation hedge and a strategic store of value.
The post Brazil targets stablecoins with new crypto rules treating them as foreign exchange appeared first on Invezz
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Brazil’s Central Bank Sets Crypto Rules, Establishes up to $7M Capital Bar for Firms
Brazil Central Bank unveils crypto rules to tighten oversight and curb illicit use
Brazil targets stablecoins with new crypto rules treating them as foreign exchange
Share:
Brazil has unveiled a crypto framework that places stablecoins under foreign exchange oversight.
Brazil’s central bank, the Banco Central do Brasil (BCB), unveiled the regulations on Nov. 10, covering a spectrum of activities that would otherwise have remained outside the scope of traditional financial supervision.
Brazil to regulate stablecoin use
Regulators have specifically focused on stablecoins due to their rapid adoption in Brazil’s payment landscape.
Around 90% of local crypto activity involves stablecoins, according to BCB President Gabriel Galipolo.
Even though stablecoins offer faster and cheaper means of transactions, they have often been associated with tax evasion and money laundering risks, and that seems to have prompted authorities to reclassify them under foreign exchange oversight.
Any transaction involving stablecoins, whether for purchasing goods, remitting money abroad, or converting between digital and fiat currencies, will be treated as a foreign exchange operation.
These activities will now fall under the purview of licensed FX institutions and the newly defined SPSAVs with certain caps in place.
Transfers involving unlicensed foreign counterparties will be limited to $100,000 per transaction and must be accompanied by relevant documentation to verify source and purpose.
Stablecoin transfers to or from self-custodied wallets are also included under the new framework, provided a service provider is involved in the transaction.
Rather than banning self-custody outright, the rules require regulated platforms to identify the wallet’s owner and conduct due diligence on the origin and destination of transferred assets.
Consumer protections
The rules, set to take effect on Feb. 2, 2026, also introduce a new licensing category for virtual asset service providers, dubbed Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs).
Those classified as SPSAVs will have to secure proper licensing and adhere to strict reporting and other obligations similar to how traditional institutions are regulated in Brazil.
Under the mandates, crypto service providers must implement consumer protection measures, conflict of interest safeguards, and detailed customer disclosures.
“The objective is to provide greater efficiency and legal certainty to these operations, avoid potential regulatory arbitrage, and safeguard national statistics and accounts that may be affected by these operations,” the BCB said.
Additional elements of the framework include mandatory reporting of cross-border and capital-market transactions beginning May 4, 2026.
Stablecoin regulations across the globe
Ever since the United States unveiled the GENIUS Act earlier this year, several other nations have fast-tracked efforts to regulate the booming stablecoin sector that has largely been dominated by dollar-backed stablecoins.
As previously reported by Invezz, Stablecoin transactions surged over 70% in the months following the GENIUS Act’s passage.
To counter US dominance in the stablecoin sector, countries all across the globe are pushing for their own native alternatives that can anchor domestic payments, reduce reliance on dollar-backed tokens.
Last month, South Korean regulators issued a warning about the risks involved with stablecoins and urged traditional banks to come forward and take the lead in ensuring monetary trust.
South Korea is currently running a pilot called Project Hangang, which is testing bank-issued stablecoins within a controlled blockchain network.
South Korea’s Financial Services Commission is also expected to submit a new stablecoin framework to the National Assembly before year-end.
More recently, the Bank of England published a consultation on stablecoin regulation on Nov. 10.
Brazil’s Bitcoin reserve plans
Against this backdrop Brazil is also exploring the idea of holding Bitcoin in its national reserves.
Officials are set to attend the Central Banking Autumn Meetings in Rio de Janeiro this month, where reserve managers from across Latin America will examine the potential role of Bitcoin in sovereign wealth strategies.
Prior legislative hearings have already floated the possibility of a $19 billion sovereign Bitcoin reserve, with lawmakers positioning the asset as both an inflation hedge and a strategic store of value.
The post Brazil targets stablecoins with new crypto rules treating them as foreign exchange appeared first on Invezz
In This News
Coins
$ 104.13K
-0.90%$ 0.00...361
$ 0.0000228
$ 0.0746
$ 0.000012
Share:
In This News
Coins
$ 104.13K
-0.90%$ 0.00...361
$ 0.0000228
$ 0.0746
$ 0.000012
Share:
Read More
Brazil’s Central Bank Sets Crypto Rules, Establishes up to $7M Capital Bar for Firms