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Stablecoins Under Watch: Brazil Moves Faster Than The U.S. And Europe To Rein In Digital Cash
(MENAFN- The Rio Times) In Brazil, the digital-money landscape is changing fast. From February 2026 onward, transactions using stablecoins-digital tokens pegged to fiat currencies-will legally count as foreign-exchange operations.
The nation's central bank is no longer treating stablecoins as peripheral or experiment-only, but as full-blown currency substitutes that must play by the same rules as banks and currency-traders.
Why now? Because in Brazil's crypto marke roughly 90 % of transactions involve stablecoins, not speculative tokens.
They're used for payments, savings, cross-border transfers-bypassing traditional banking channels. Unregulated, they posed risks of capital flight, tax avoidance and oversight gaps.
Brazil's move places these tokens inside the regulated financial perimeter. The new regime requires licensing for service providers, full reporting, consumer-protection and anti-money-laundering controls-even when wallets are self-custodied but intermediated.
The message is clear: if you move money via stablecoins in Brazil, you'll face the same rules as if you moved it in dollars via a bank.
Globally, Brazil is far from alone-but its approach is distinctive. In the European Union, the Markets in Crypto‐Assets Regulation (MiCAR) has set one of the world's strictest rules via full reserve-backing, regulated issuers, and firm consumer-rights protections.
In the United States, the GENIUS Act (2025) creates strong frameworks for dollar-linked stablecoins and dual federal/state oversight. Meanwhile China has opted for bans and state-issued digital currency experiments instead of open stablecoins.
In this competitive environment, Brazil's regulation signals a pragmatic path: not rejection, and not laissez-faire, but active integration.
For expats, international businesses and global fintech players, Brazil matters: the country is showing that stablecoins are not fringe finance. They're becoming part of mainstream financial infrastructure-and the supervision that comes with it.
If you transact, save or invest across borders, keep an eye on Brazil. The rules change. And what Brazil does today may well shape how other emerging-market regulators respond tomorrow.
The nation's central bank is no longer treating stablecoins as peripheral or experiment-only, but as full-blown currency substitutes that must play by the same rules as banks and currency-traders.
Why now? Because in Brazil's crypto marke roughly 90 % of transactions involve stablecoins, not speculative tokens.
They're used for payments, savings, cross-border transfers-bypassing traditional banking channels. Unregulated, they posed risks of capital flight, tax avoidance and oversight gaps.
Brazil's move places these tokens inside the regulated financial perimeter. The new regime requires licensing for service providers, full reporting, consumer-protection and anti-money-laundering controls-even when wallets are self-custodied but intermediated.
The message is clear: if you move money via stablecoins in Brazil, you'll face the same rules as if you moved it in dollars via a bank.
Globally, Brazil is far from alone-but its approach is distinctive. In the European Union, the Markets in Crypto‐Assets Regulation (MiCAR) has set one of the world's strictest rules via full reserve-backing, regulated issuers, and firm consumer-rights protections.
In the United States, the GENIUS Act (2025) creates strong frameworks for dollar-linked stablecoins and dual federal/state oversight. Meanwhile China has opted for bans and state-issued digital currency experiments instead of open stablecoins.
In this competitive environment, Brazil's regulation signals a pragmatic path: not rejection, and not laissez-faire, but active integration.
For expats, international businesses and global fintech players, Brazil matters: the country is showing that stablecoins are not fringe finance. They're becoming part of mainstream financial infrastructure-and the supervision that comes with it.
If you transact, save or invest across borders, keep an eye on Brazil. The rules change. And what Brazil does today may well shape how other emerging-market regulators respond tomorrow.
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