On stablecoins in Brazil.
Actors in the cryptocurrency space consider the proposed restriction, driven by the Central Bank of Brazil, excessive and argue that such an action could lead companies to move their operations to other countries. Recently, an alternative proposal has also been presented, replacing the suggested ban with a monitoring system.
Exchange platforms argue that the proposal to prohibit the transfer of stablecoins to self-custody wallets in Brazil could cause these to move abroad. The initiative to ban the conversion of stablecoins to self-custody has been criticized by exchanges, which consider this decision disproportionate. Entities like Binance have been collaborating with the central bank for several months to present alternatives that address governmental concerns while preventing the implementation of such a ban.
Binance is one of the platforms promoting a system that would allow exchanges to report on the movements and activities of customers, avoiding the need for an absolute ban. Thiago Sarandy, head of legal and regulatory affairs at Binance in Brazil and El Salvador, stated that, due to the characteristics of blockchain technology, this could be fruitful if the central bank establishes collaboration with blockchain analysis companies to track the destination of funds in each operation.
This, in turn, could contribute to the initiatives to combat money laundering and tax evasion that the central bank is promoting in this context. "The central bank should completely abolish this ban and create a reporting system to facilitate the tracking of transactions," he emphasized. Cesar Carvalho, a partner at Baptista Luz Advogados, mentioned that they had been discussing with the central bank about the repercussions of implementing the proposal as it stands, noting that it could impact the guarantees enshrined in the constitution. He expressed: "An absolute ban of this magnitude is disproportionate and very exaggerated. Self-custody and the underlying principles include constitutional rights, such as the right to property. They are the foundations of our democracy."
Finally, Guilherme Sacamone, leader of OKEx in Brazil, warned that this action could force exchanges to leave the country. "It only affects those trying to operate within a regulatory framework," he concluded. Gabriel Galipolo, the current president of the Central Bank of Brazil, has linked cryptocurrencies to illicit activities, claiming they are used by individuals to maintain "a certain opacity regarding taxation or for money laundering."
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