The Central Bank of Brazil is looking to tighten regulations on cryptocurrencies, particularly stablecoins. One of the proposed measures is to require exchanges operating in the country to have a physical presence. This information was reported by CriptoFacil, stating that the President of the Brazilian monetary authority, Roberto Campos Neto, revealed this “news” at an event in São Paolo. Campos Neto also mentioned that the Central Bank’s priority is to ensure that digital assets traded in Brazil have sufficient backing.
In addition to the physical presence requirement, the Central Bank plans to take action against the cross-border activities of crypto companies. The aim is to prevent organizations from acting as both custodians of digital assets and issuers, for example.
During the event, Campos Neto also discussed the use of cryptocurrencies in Brazil. He noted a shift in trading habits, with stablecoins like USDT accounting for a larger portion of the trading volume compared to Bitcoin. Campos Neto expressed concerns about the potential association of stablecoin usage with illicit activities such as money laundering and tax evasion.
It is worth noting that as of June this year, the Central Bank has been given the responsibility of regulating cryptocurrency services in Brazil. This means that the bank will have to oversee the operations of cryptocurrency service providers and establish rules for their functioning.
Overall, the Central Bank’s intention to tighten regulations demonstrates its increasing focus on the cryptocurrency industry and its commitment to ensuring the integrity of digital assets traded in the country.