Brazil Targets Illegal Bitcoin, Stablecoin Use Through New Proposals

Brazil is tightening its regulatory framework around cryptocurrencies, particularly targeting the criminal use of virtual assets. The central bank proposed a rule that designates the buying, selling, or exchanging of virtual assets pegged to fiat currency as a foreign exchange operation. This regulation aims to enhance supervision and enforcement against illegal activities tied to stablecoins. In tandem, President Luiz Inácio Lula da Silva introduced a bill in Congress permitting the seizure of virtual assets during investigations, allowing authorities to convert these assets into fiat currency when necessary. Central bank President Gabriel Galipolo expressed ongoing concerns regarding the opacity of cryptocurrency transactions, which complicates taxation and anti-money laundering efforts. Overall, these legislative and regulatory moves mark Brazil’s commitment to addressing the challenges posed by the growing digital asset market.

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