In a Brazilian Congress hearing, Fábio Araújo, consultant for the Financial System Regulation Department (Denor), stressed that, unlike other crypto assets, stablecoins have specific traits that would be better regulated if they were classified as monetary instruments instead of as digital assets.
Key Takeaways
Brazil’s central bank argued stablecoins are electronic money, setting the stage for strict new regulations. Crypto group Abcripto rejected this view, warning the classification will stifle local stablecoin adoption.The bank also aligned VASP oversight with securities rules, threatening smaller crypto firms with closure.Abcripto, the Brazilian Association of Cryptoeconomics, which groups industry heavyweights like Binance, Coinbase, Fireblocks, Visa, Tether, OKX, and Ripio, has rejected this classification.
