The Central Bank of Brazil officially announced a regulatory framework for encryption service providers, requiring relevant companies to obtain licenses and comply with forex and Capital Market rules, with international transactions needing to be reported regularly. According to the regulations, the minimum capital for encryption companies is 10.8 million reais (about 2 million USD), and certain types of business must hold at least 37.2 million reais (about 7 million USD). Those who do not meet the standards on time will be prohibited from operating, and foreign platforms must establish a local entity in Brazil to serve customers. The framework also incorporates stablecoins and cross-border transfers into the forex regulatory system, setting a limit of 100,000 USD per transaction for self-hosted wallet transactions, and requiring monthly reporting of transaction data to the Central Bank starting in May. Previous reports indicated that the new regulations will take effect on February 2, 2025, and existing companies must complete compliance within nine months. (CoinDesk)