Brazil Classifies Stablecoin Payments as Foreign Exchange Under New Rules
Brazil's central bank has enacted sweeping regulatory changes that redefine stablecoin transactions as foreign exchange operations. The resolutions (519, 520, and 521) place dollar-pegged tokens under the same oversight framework governing traditional currency conversions.
The move targets Brazil's $319 billion crypto market—the world's fifth-largest—where stablecoins dominate 90% of transaction volume. Central bank president Gabriel Galipolo had flagged the "significant and worrying" growth of these dollar-linked tokens earlier this year, particularly their use in circumventing financial controls.
While acknowledging stablecoins' efficiency advantages over legacy payment systems, regulators aim to curb their documented role in tax avoidance and illicit finance. The new rules preserve crypto's transactional benefits while closing surveillance gaps through formal foreign exchange classification.
