Brazil's Crypto Industry Pushes Back Against Stablecoin Classification

While Congress considers Bill 4308/2024 to regulate stablecoins in Brazil, the country's crypto industry is pushing back against a proposal to classify them as electronic money. This move would introduce significant regulatory changes and create uncertainty for issuers and users alike.

The main association representing the Brazilian crypto industry, Abcripto, has submitted a technical note advocating for maintaining the current classification of stablecoins as digital assets. According to Abcripto, treating stablecoins as electronic money would be at odds with their operational characteristics and could lead to regulatory conflicts.

Abcripto's President, Julia Rosin, emphasized that Brazil should align with global digital economy trends and avoid the pitfalls faced by jurisdictions like the European Union, which have chosen to classify stablecoins as electronic money. By maintaining the current classification, Brazil can preserve legal certainty, innovation, and its ability to compete in an increasingly internationalized market.