The country’s central bank, Banco Central do Brasil (BCB), has proposed new rules that would stop transfers of stablecoins, such as Tether’s USDT
Announced on November 29, the proposal is still a draft and will remain open for public feedback until February 28, 2025.
The idea behind it is to tighten control over foreign currency transactions and keep closer tabs on Brazilian money leaving the country.
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The proposal includes a rule that states:
The provider of virtual asset services is prohibited from transferring virtual assets denominated in foreign currency to a self-custodial portfolio.
Since January, the Brazilian real has lost over 23% of its value compared to the dollar, with the exchange rate hitting an all-time high of 6.09 reals per dollar on November 29.
Many Brazilians have been turning to stablecoins like USDT to protect their savings as the real continues to lose value.
This decision is part of a broader plan to update existing laws from 2022 that deal with companies offering crypto services. The central bank wants to expand the rules for the foreign exchange market to include cryptocurrency-related activities like payments, sales, custody, and transactions tied to foreign currencies.
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