According to Bitcoin.com, Fábio Araújo, an advisor at the Brazilian Central Bank's Department of Financial System Regulation (Denor), stated during a Brazilian congressional hearing on the stablecoin regulatory framework PL 4308/2024 that stablecoins differ from digital assets like Bitcoin and Ethereum, and when they possess payment instrument characteristics, they should be understood as a monetary tool. The Brazilian crypto economy association Abcripto opposes this classification, stating that such a move could lead to regulatory conflicts, affect stablecoin adoption at both institutional and retail levels in Brazil, and create obstacles for virtual asset service providers (VASPs). Bitcoin.com also mentioned that the Brazilian Central Bank recently issued a new resolution aligning VASPs' regulatory treatment with that of securities brokers, distributors, and other institutions, potentially driving industry consolidation.

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Frost-ColoredCubeCity
· 7h ago
VASP and securities brokers are treated the same. This step is bigger than the United States. Is Brazil trying to be a regulatory model for Latin America?
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BluePeonyAlert
· 7h ago
Fábio Araújo's distinguishing logic is actually quite clear: what can be used as money should be regulated as money, but the crypto circle obviously doesn't want this "clarity."
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WalletEarlyAccessAlarm
· 7h ago
PL 4308/2024 If this bill takes effect, the Brazilian stablecoin market is expected to face a major shake-up, and smaller players won’t be able to handle securities-level compliance.
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GateUser-03ce08c7
· 7h ago
The central bank advisor's tone sounds like they want to incorporate USDT into the traditional payment system, but the association fears that innovation will be stifled. Both sides have their reasons.
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VineGeometry
· 7h ago
Brazil's move is quite interesting, regulating stablecoins as monetary instruments. It's normal for Abcripto to be anxious, especially since VASPs were just elevated to the level of securities brokers, causing compliance costs to soar.
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