Brazil's central bank will develop plans for stablecoins and cryptocurrency regulations this year

The Central Bank of Brazil, has announced plans to regulate crypto assets, including stablecoins. This year, it will consider developing rules for stablecoins used for payments and foreign exchange, but it describes the work as "internal planning". The central bank will launch a second consultation around virtual asset service providers (VASPs), including the rules and mandates they must adhere to. In addition, it also plans to provide a complementary framework that will include prudential regulation and VASP reporting.
The regulatory proposal will be finalized in 2024 and the main objective is to protect investors from fraud and scams. The Central Bank of Brazil is also keen to ensure that VASPs comply with anti-money laundering (AML) and similar compliance procedures.
The move comes after the central bank concluded its first consultation in January and explored a variety of cryptocurrency-related topics, including asset segregation, risk management, cyber security and disclosures reflecting the comprehensive nature of the consultation.