Brazil's Crypto Industry Divided Over Stablecoin Regulation

Brazil's cryptocurrency industry is at odds over how to regulate stablecoins, which have gained immense popularity in the country. The issue came to a head as Congress prepares to consider Bill 4308/2024, introduced by Deputy Aureo Ribeiro, to regulate stablecoins and their issuance and use in Brazil.

Abcripto, the main crypto industry association in Brazil, has submitted a technical note arguing that stablecoins should not be classified as electronic money. According to Abcripto, this would introduce uncertainty and regulatory conflicts, and instead recommends maintaining the current classification of stablecoins as digital assets.

The association's president, Julia Rosin, emphasized that Brazil should align with global trends in the digital economy and avoid the pitfalls faced by jurisdictions like the European Union. She stated, 'Our contribution seeks to offer technical support for the improvement of the project, preserving legal certainty, innovation, and Brazil’s ability to compete in an increasingly internationalized market, without compromising user protection and adequate regulatory oversight.'