Brazil to Treat Stablecoin Transactions as Foreign Exchange Starting 2026
Brazil's central bank will classify stablecoin transactions as foreign exchange operations beginning February 2026. The regulation applies to all VIRTUAL assets pegged to fiat currencies, including international payments made via cards or electronic methods. This marks the bank's first major crypto regulatory move since 2022's framework approval.
Central bank governor Gabriel Galipolo noted stablecoins account for 90% of Brazil's crypto transaction volume, often used to circumvent traditional financial systems. While less volatile than assets like Bitcoin, policymakers warn stablecoins create regulatory blind spots that require oversight.