Brazil considers banning people from holding Stable Coin on DEX! Central Bank: Lack of transparency can easily become a tool for tax evasion and Money Laundering

The Central Bank of Brazil has pointed out that over 90% of cryptocurrency transactions in the country involve stablecoins, but such transactions lack transparency and are susceptible to tax evasion and money laundering risks, and individuals may be prohibited from holding them on DEX in the future. (Background: Buffett invested early in Nu Holdings, a Brazil-friendly encryption bank, and Berkshire Hathaway holds positions worth 1.2 billion pounds) (Background: Coin received the 21st global regulatory authorization in Brazil: Brazil's Central Bank approved Coin's acquisition of licensed securities dealer Sim;paul) Gabriel Galipolo, the newly appointed President of the Central Bank of Brazil, recently stated publicly that over 90% of cryptocurrency transactions in the country involve stablecoins and are widely used for cross-border payments, especially in international shopping. However, he warned that these transactions lack transparency and may facilitate illegal activities and become tools for tax evasion and money laundering. Galipolo initially believed that the popularity of stablecoins was due to the convenient way they provide people with holding US dollars, but further research revealed that these transactions are often related to cross-border consumption and are frequently used to evade taxes or engage in money laundering. Proposed regulations for strict management of stablecoins or prohibiting individuals from holding them Galipolo revealed that the Central Bank of Brazil proposed new regulations in December last year, planning to incorporate stablecoins into the same regulatory framework as foreign coins, and even considering prohibiting individuals from holding stablecoins. If the regulations are passed, it will directly affect the ability of Brazilian people to participate in decentralized finance (DeFi) activities, as most decentralized finance platforms require users to manage their assets themselves. He further pointed out that most people who seek privacy may do so because they do not want to declare the contents of their purchases in order to avoid certain types of taxes. Further reading: Is it illegal for MetaMask to receive USDT? Brazil's Central Bank plans to ban the withdrawal of stablecoins to self-custody wallets, and the reaction from the encryption community is divided between privacy, innovation, and regulation. The position of Brazil's Central Bank has sparked widespread discussion in the cryptocurrency community. Some users believe that strengthening regulation cannot prevent the popularization of cryptocurrencies and will only prompt the market to turn to more decentralized alternatives. Some voices criticize excessive regulation for potentially damaging privacy rights and financial innovation, and hindering the development of the digital economy. However, there are also views supporting moderate regulation, believing that it helps combat illegal activities and maintain financial market stability. Some users pointed out that the role of stablecoins in emerging markets cannot be ignored, and a regulatory framework should be sought that balances privacy and compliance. The development of cryptocurrencies is caught between privacy, innovation, and regulation, and Brazil's policy direction will bring another important experience to the world. Related reports: Buffett invested early in Nu Holdings, a Brazil-friendly encryption bank, and Berkshire Hathaway holds positions worth 1.2 billion pounds Coin received the 21st global regulatory authorization in Brazil: Brazil's Central Bank approved Coin's acquisition of licensed securities dealer Sim;paul Is it illegal for MetaMask to receive USDT? Brazil's Central Bank plans to ban the withdrawal of stablecoins to self-custody wallets (Brazil considers banning individuals from holding stablecoins on DEX! Central Bank: Lack of transparency makes them susceptible to tax evasion and money laundering) This article was first published on BlockTempo, the most influential blockchain news media in the Asian region.