Things that have been (currently or in the past) banned in Brazil 🇧🇷 so far:

- ✅ Telegram
- ✅ Rumble
- ✅ 𝕏
- ⌛ Monero
- ⌛ Stablecoins

quoting
naddr1qv…xf4c

Original: https://techreport.com/crypto-news/brazil-central-bank-ban-monero-stablecoins/

Brazilian’s Central Bank Will Ban Monero and Algorithmic Stablecoins in the Country

Brazil proposes crypto regulations banning Monero and algorithmic stablecoins and enforcing strict compliance for exchanges.

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KEY TAKEAWAYS

• The Central Bank of Brazil has proposed regulations prohibiting privacy-centric cryptocurrencies like Monero.
• The regulations categorize exchanges into intermediaries, custodians, and brokers, each with specific capital requirements and compliance standards.
• While the proposed rules apply to cryptocurrencies, certain digital assets like non-fungible tokens (NFTs) are still ‘deregulated’ in Brazil.

In a Notice of Participation announcement, the Brazilian Central Bank (BCB) outlines regulations for virtual asset service providers (VASPs) operating in the country.

In the document, the Brazilian regulator specifies that privacy-focused coins, such as Monero, must be excluded from all digital asset companies that intend to operate in Brazil.

Let’s unpack what effect these regulations will have.

Brazil’s Crackdown on Crypto Fraud

If the BCB’s current rule is approved, exchanges dealing with coins that provide anonymity must delist these currencies or prevent Brazilians from accessing and operating these assets.

The Central Bank argues that currencies like Monero make it difficult and even prevent the identification of users, thus creating problems in complying with international AML obligations and policies to prevent the financing of terrorism.

According to the Central Bank of Brazil, the bans aim to prevent criminals from using digital assets to launder money. In Brazil, organized criminal syndicates such as the Primeiro Comando da Capital (PCC) and Comando Vermelho have been increasingly using digital assets for money laundering and foreign remittances.

… restriction on the supply of virtual assets that contain characteristics of fragility, insecurity or risks that favor fraud or crime, such as virtual assets designed to favor money laundering and terrorist financing practices by facilitating anonymity or difficulty identification of the holder.

– Notice of Participation

The Central Bank has identified that removing algorithmic stablecoins is essential to guarantee the safety of users’ funds and avoid events such as when Terraform Labs’ entire ecosystem collapsed, losing billions of investors’ dollars.

The Central Bank also wants to control all digital assets traded by companies in Brazil. According to the current proposal, the national regulator will have the power to ask platforms to remove certain listed assets if it considers that they do not meet local regulations.

However, the regulations will not include NFTs, real-world asset (RWA) tokens, RWA tokens classified as securities, and tokenized movable or real estate assets. These assets are still ‘deregulated’ in Brazil.

Monero: What Is It and Why Is Brazil Banning It?

Monero ($XMR) is a cryptocurrency that uses a protocol called CryptoNote. It launched in 2013 and ‘erases’ transaction data, preventing the sender and recipient addresses from being publicly known. The Monero network is based on a proof-of-work (PoW) consensus mechanism, which incentivizes miners to add blocks to the blockchain.

Like Brazil, other nations are banning Monero in search of regulatory compliance. Recently, Dubai’s new digital asset rules prohibited the issuance of activities related to anonymity-enhancing cryptocurrencies such as $XMR.

Furthermore, exchanges such as Binance have already announced they will delist Monero on their global platforms due to its anonymity features. Kraken did the same, removing Monero for their European-based users to comply with MiCA regulations.

Data from Chainalysis shows that Brazil is the seventh-largest Bitcoin market in the world.

In Latin America, Brazil is the largest market for digital assets. Globally, it leads in the innovation of RWA tokens, with several companies already trading this type of asset.

In Closing

Following other nations, Brazil’s regulatory proposals aim to combat illicit activities such as money laundering and terrorism financing.

Will the BCB’s move safeguard people’s digital assets while also stimulating growth and innovation in the crypto ecosystem? Only time will tell.

References

Cassio Gusson is a journalist passionate about technology, cryptocurrencies, and the nuances of human nature. With a career spanning roles as Senior Crypto Journalist at CriptoFacil and Head of News at CoinTelegraph, he offers exclusive insights on South America’s crypto landscape. A graduate in Communication from Faccamp and a post-graduate in Globalization and Culture from FESPSP, Cassio explores the intersection of governance, decentralization, and the evolution of global systems.

View all articles by Cassio Gusson