Brazil Advances Stablecoin Regulation: A New Era for Crypto?
Brazil is taking significant steps towards regulating stablecoins, potentially reshaping the nation’s cryptocurrency landscape. The Chamber of Deputies’ Committee on Science, Technology, and Innovation (CCTI) recently approved a report on the regulation of stablecoins in Brazil. This follows a favorable opinion from Deputy Lucas Ramos on Bill No. 4.308/2024.
The bill aims to regulate the issuance and circulation of virtual assets pegged to fiat currencies like the Real and the Dollar. The original project, authored by Deputy Aureo Ribeiro, has undergone changes through a substitute text.
Key Changes and Definitions
“The new text replaces the commercial term ‘stablecoin’ with the technical definition of ‘virtual asset referenced in fiat currency.'”
This change reflects a move towards precise legal language. The proposal seeks to close legal gaps and provide legal certainty to the national bitcoin and cryptocurrency ecosystem.
Market Growth and Regulatory Urgency
The market for assets pegged to the Brazilian currency is experiencing rapid growth. Trading volume jumped from R$ 4.9 billion in 2024 to R$ 6.5 billion by August 2025, according to the report. This growth underscores the urgency of regulation to create a secure and competitive digital environment.
Central Bank’s Role and Restrictions
The substitute bill grants the Central Bank of Brazil the authority to regulate the issuance of these assets by entities located in the country. The monetary authority will regulate the conditions for carrying out the activity and maintaining reserves.
- Assets must be fully backed by currencies or reference assets specified by the issuer.
- The bill prohibits the issuance, offering, or distribution of assets that seek to maintain a stable value exclusively through algorithmic mechanisms.
- Operations without a corresponding segregated reserve of collateral are prohibited.
This measure aims to prevent financial collapses that could undermine confidence in the bitcoin and cryptocurrency market, similar to the Terra (LUNA) case.
Transparency and Investor Protection
Issuers located in Brazil must maintain reserves segregated from their own assets and subject to audits. Independent auditors will conduct periodic checks on the existence and sufficiency of this collateral.
Companies will be required to publish the main findings of these audits to ensure transparency for investors. The Central Bank may also require additional guarantees in Brazil when the asset’s collateral is held abroad, ensuring the solvency of the local issuer and protecting Brazilian users.
Revenue Distribution and Criminal Penalties
The bill clarifies the treatment of revenue generated from reserves. Issuers have the freedom to manage the income from the collateral reserves, and these gains can be passed on to the holders of the virtual assets, subject to future regulation.
The distribution of these revenues will not classify the asset as a public offering of securities, avoiding conflicts with the Securities and Exchange Commission (CVM). This distinction provides tax and regulatory clarity for products that generate passive income in the sector.
Tougher Penalties for Fraud
The project also increases penalties for fraud in the sector by adding a paragraph to Article 171-A of the Brazilian Penal Code. The new law criminalizes the act of putting stable virtual assets into circulation without the corresponding reserve of collateral.
The penalty applies to those who act with the aim of obtaining an illicit advantage to the detriment of others through fraud, criminalizing intentional practices that compromise the stability of the bitcoin and cryptocurrency market.
Furthermore, the circulation of foreign assets in Brazil will depend on the intermediation of authorized service providers, who must carry out due diligence on the legitimacy of the international issuer.
Next Steps
The project now moves to the committees on Economic Development, Finance and Taxation, and Constitution and Justice for analysis. The approval in the CCTI marks the first legislative step towards the new market structure.
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