- Brazil’s central bank, led by Governor Roberto Campos Neto, plans to enhance crypto regulation due to increased adoption.
- Cryptocurrency funds imported by Brazilians saw a 44.2% YoY increase, reaching $7.4 billion from January to August 2022.
- Stablecoins’ popularity for payments has raised concerns about tax evasion and illicit uses, prompting increased oversight.
The governor of Brazil’s central bank has announced plans to ramp up crypto regulation in response to rapidly growing adoption in the country.
In recent remarks, Governor Roberto Campos Neto highlighted a 44.2% year-over-year increase in cryptocurrency funds imported by Brazilians, totaling $7.4 billion from January to August 2022.
Citing the popularity of stablecoins for payments, Campos Neto said the central bank would react by bringing crypto platforms under increased oversight. He raised concerns around potential tax evasion and illicit uses.
Brazil granted crypto authority to central bank in 2022
Brazil granted the central bank primary regulatory authority over cryptocurrencies in June 2022, while securities tokens remain under the national SEC equivalent. The bank is also developing a CBDC dubbed Drex, which drew controversy over the discovered code enabling balance freezing.
Campos Neto’s statements signal Brazil’s intent to curb perceived crypto risks through stricter rules. However, some industry participants argue that tighter control may stifle innovation. They contend regulations should strike a balance between protecting consumers and allowing the nascent asset class to flourish.
As global adoption accelerates, Brazil faces the delicate task of crafting optimal crypto guardrails without suppressing lawful uses. With the central bank taking the regulatory lead, all eyes are on how it will update frameworks to accommodate surging digital asset integration while upholding financial stability.