Brazil Targets Illegal Bitcoin, Stablecoin Use Through New Proposals

Brazil's government is implementing stricter regulations on cryptocurrencies to combat their illicit use. The central bank announced on November 12, 2025, that transactions involving virtual assets tied to fiat currencies will now be categorized as foreign exchange operations. This change is part of a broader effort initiated by President Luiz Inácio Lula da Silva, who proposed a bill allowing authorities to seize virtual assets during investigations. The central bank highlighted concerns over the opacity of cryptocurrency transactions, particularly with stablecoins, which complicate tracking for anti-money laundering efforts. The measures aim to streamline the regulation of virtual asset service providers (VASPs) and enhance the government's capacity to curb criminal activities related to cryptocurrencies.

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