Brazilian Central Bank to Establish Regulatory Framework for Stablecoins and Cryptocurrencies this Year

According to reports, the Central Bank of Brazil is set to engage in a second round of consultations regarding Virtual Asset Service Providers (VASPs), including the rules and authorizations they must adhere to. Additionally, it plans to provide a supplementary framework that includes prudent supervision and VASP reporting. The regulatory proposal is expected to be finalized by 2024, with the main objective being to protect investors from fraud and scams, and to ensure that VASPs comply with anti-money laundering (AML) and similar compliance procedures.