ewsba.se
Brazil's central bank has banned electronic foreign exchange providers from using stablecoins or other cryptocurrencies to settle overseas remittances.
The Brazilian ban takes effect on Oct. 1 of this year, with adaptation deadlines running into 2027.
Payments between a foreign exchange provider and its foreign counterpart must move through a foreign exchange transaction or a non-resident real-denominated account in Brazil.
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Cryptocurrencies, including Bitcoin (CRYPTO: $BTC), will be banned from such transactions.
Going forward, a remittance firm cannot convert foreign funds into stablecoins and settle the payment on a blockchain.
The rule does not ban crypto trading. Investors can still buy, sell, hold, and transfer cryptocurrencies such as Ethereum (CRYPTO: $ETH) through authorized providers.
The change targets companies such as Wise and Nomad that had built stablecoin settlement into cross-border flows.
The ban comes with Brazil's crypto market moving $6 billion U.S. to $8 billion U.S. a month, with stablecoins such as Circle’s (NYSE: $CRCL) USD Coin (CRYPTO: $USDC) accounting for roughly 90% of those volumes.
This is the latest in a series of crypto rule changes from Brazil’s central bank. In March, Brazil extended its financial transaction tax applied to stablecoin operations.
BTC is currently trading at $78,700 U.S.