Brazil’s central bank has officially released much-anticipated guidelines aimed at regulating the country’s cryptocurrency market, with a primary focus on curbing the rising incidences of scams and money laundering activities.
This move comes in the wake of the legal framework for cryptocurrencies that was approved in 2022, which had been contingent on the central bank’s additional regulatory measures. Over the past months, the central bank conducted four public consultations to gather input on the new rules.
New Crypto Guidelines In Brazil
At a recent press conference, Gilneu Vivan, the director of regulation at the central bank, emphasized that the new regulations are designed to minimize opportunities for scams, fraud, and the misuse of virtual asset markets for money laundering.
These regulations are set to take effect in February 2026 and will encompass authorization processes for foreign-exchange and securities brokers, as well as for distributors and virtual-asset service providers.
According to the statement released on the central bank’s official website, any purchase, sale, or exchange of crypto assets pegged to fiat currencies, or most commonly known as stablecoins, will now be classified as a foreign exchange operation.
This classification also extends to international payments or transfers involving crypto assets, including transactions made to settle obligations via electronic payment methods or cards.
Furthermore, the new guidelines will enhance existing regulations on customer protection, transparency, and anti-money laundering efforts, ensuring that virtual-asset service providers adhere to the same standards as traditional financial institutions.
UK Central Bank’s Stablecoin Regime Advances
In parallel, the Bank of England announced a proposal allowing issuers of widely used stablecoins to invest up to 60% of the assets backing them in government debt. This marks a potential shift in the Bank’s approach to the sector, as it plans to implement new rules next year.
However, the Bank has also proposed capping the amount of stablecoins that individuals and businesses can hold, a move that differentiates it from the regulatory approaches being taken by the European Union (EU) and US authorities.
Sarah Breeden, the Bank of England’s deputy governor for financial stability, highlighted that the proposals represent a significant step towards establishing a stablecoin framework in the UK.
The Bank has indicated that it is open to feedback and has made adjustments to its proposals based on stakeholder input, particularly regarding the interaction between stablecoin issuers and the Bank.
Meanwhile, the Bank of England is also considering the possibility of providing central bank liquidity facilities to systemic stablecoin issuers during periods of market stress, offering a safety net if these issuers struggle to liquidate their reserve assets in the private market.
Featured image from DALL-E, chart from TradingView.com
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