Brazil's Central Bank Proposes Ban on Stablecoin Withdrawals to Self-Custody Wallets, Citing 71% Crypto Transfers and $90B Activity

Nov 30, 2024, 02:35 PM

Brazil's Central Bank is proposing new regulations that would prohibit users from withdrawing stablecoins, including Tether (USDT), to self-custody wallets. This move comes as stablecoins account for approximately 71% of the country's crypto transfers, which total around $90 billion in activity, predominantly linked to global transactions, especially those pegged to the US dollar. The Central Bank cites the need for investor protection and regulatory alignment as key reasons for the proposed ban. This regulatory shift is also seen as a response to the depreciation of the Brazilian Real, which has recently surged past 6.00 against the US dollar, marking a new low and surpassing levels seen during the COVID-19 pandemic.