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Central Bank of Brazil wants to ban sending stablecoins to wallets like Metamask
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The Central Bank of Brazil (BC) has proposed new guidelines that could transform the use of stablecoins in the country.
The proposal, presented in public consultation CP 111, aims to prohibit the transfer of stablecoins, such as USDT and USDC, to self-custody wallets, such as MetaMask, Trust Wallet, Trezor and Ledger.
According to Article 76-N of the draft, “virtual asset service providers are prohibited from transmitting virtual assets denominated in foreign currency to a self-custodial wallet”.
In practice, this means that users who acquire stablecoins through exchanges will not be able to transfer them to their own digital wallets. These currencies must remain under the custody of Virtual Asset Service Providers (VASPs), that is, the exchanges themselves.
Stablecoins
Experts interpret this measure as an attempt by the Central Bank to increase control over international payments and prevent operations outside the official foreign exchange market.
Tatiana Mello Guazzelli, a lawyer specializing in cryptoassets, states that the objective is to “establish mechanisms to prevent transfers from taking place outside the exchange market”.
The use of stablecoins in Brazil has grown significantly. Data from the Federal Revenue show that, in September, the traded volume of USDT reached R$16.6 billion, while Bitcoin registered R$1.4 billion.
This popularity of stablecoins, often used as protection against the devaluation of the real, may have motivated the BC to propose stricter regulations.
Furthermore, the BC’s proposal also seeks to prevent Brazilian users from sending stablecoins to self-custody wallets of non-residents in the country.
Article 76-F establishes that “virtual asset service providers are prohibited from transmitting virtual assets to a self-custodial portfolio held by a non-resident”.
Central Bank of Brazil wants to ban sending stablecoins to wallets like Metamask
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Central Bank of Brazil wants to ban sending stablecoins to wallets like Metamask
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Central Bank of Brazil wants to ban sending stablecoins to wallets like Metamask
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Central Bank of Brazil wants to ban sending stablecoins to wallets like Metamask
