Brazil’s Central Bank Sets Strict Rules for Stablecoin Transfers

Highlights:

• Brazil’s Central Bank has announced new restrictions on stablecoin transactions.
• The new regulation will limit sending stablecoin coins to some selected wallets.
• Brazil is also considering the possibility of issuing its first sovereign bond denominated in Chinese Yuan.

Brazil’s Central Bank has submitted new proposals aimed at tightening the rules governing stablecoin transactions. The latest proposal forms part of the bank’s effort as the nation prepares to overhaul its crypto regulatory principles. First, the rule will restrict sending stablecoins to wallets owned by non-Brazilians. Second, it prohibits crypto users from transferring stablecoins from regulated trading platforms to self-hosted wallets. These rules will be discussed in a roundtable event.

Speakers at the roundtable discussion will include top executives at different crypto-related companies. Some of them are Matheus Moura, the Chief Executive Officer (CEO) at BRLAdigital, a leading fintech firm in Brazil; Antonio Neto, Latam Growth Lead at Solana Foundation; and Julia Rosin, Head of Public Policy at Bitso Brazil.

🚨 X Space: Brazil's Stablecoin Reckoning

Brazil’s Central Bank has proposed several stringent regulations for stablecoin transfers as part of a forthcoming crypto regulatory regime

These include:
– Restrictions on sending stablecoins to wallets controlled by non-Brazilian… pic.twitter.com/0y2afOMTJz

— 🇧🇷 Brazil Crypto Report (@BrazilCrypto_) May 14, 2025

Aside from stablecoin regulations, Brazil plans to issue its first sovereign bond denominated in Chinese yuan. This plan is still under consideration, with a final decision expected in the coming weeks.

Several EU Nations Criticise Stablecoins

Brazil’s new regulations come amid growing scrutiny and stablecoin criticisms. Last month, the European Central Bank (ECB) raised concerns about the growing support for dollar-backed stablecoins in the US.

In a publicized document, the ECB warned that the STABLE and GENIUS bills introduced in the US will boost global stablecoin adoption, triggering capital shifts toward American commodities. The ECB fears this could weaken the Euro by introducing liquidity stress within the European banking system.

On April 16, Crypto2Community reported that Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, raised similar concerns about Stablecoins’ perceived roles in undermining the Euro in global payments. In an event in Milan, the Minister said stablecoins pose greater risks to Europe than trade tariffs introduced by the US.

As part of a new cryptocurrency regulatory framework, Brazil's central bank has proposed strict oversight of stablecoin transfers. The proposed rules include restrictions on sending stablecoins to wallets controlled by non-Brazilian entities, reflecting the country’s tightening…

— Wu Blockchain (@WuBlockchain) May 15, 2025

Stablecoins Record Growing Adoption Rate in Some Regions

While stablecoins face criticism in the EU, they have recorded significant growth in South Korea. According to a report, the Asian nation transferred $40.6 billion abroad. Notably, Stablecoins like USDT and USDC accounted for 47.3% of the moved cryptocurrencies.

Russia has also shown interest in stablecoins to escape EU sanctions. In an April 16 report, the Deputy Director at the Ministry of Finance’s financial policy department of Russia, Osman Kabaloev, recommended that Russia develop its stablecoin. The director’s suggestions followed the freezing of Russia-linked digital wallets holding USDT by the EU. He said Russia should create a stablecoin similar to USDT but tied to currencies other than the US dollar.

Kabaloev stated:

“The recent blockage makes us think that we need to consider creating internal tools similar to USDT, possibly pegged to other currencies.”

Meanwhile, in March, the US Securities and Exchange Commission (SEC) updated its regulatory guidelines on stablecoins. The new rule clarified that certain stablecoins known as covered stablecoins will no longer be classified as securities.

The SEC clarified:

“Covered Stablecoins are marketed solely for use in commerce, as a means of making payments, transmitting money, and/or storing value, and not as investments.”

The regulatory body added that the above marketing pattern excluded stablecoins from being offered or sold as securities, making transaction reporting an unnecessary requirement for the asset class.