Brazil is currently debating a possible ban on the withdrawal of stablecoins to personal wallets.
Banco Central do Brasil (BCB), Brazil's central bank, published a proposal on November 29 that would ban the transfer of stablecoins such as Tether's USDT to personal wallets.
The proposal is part of a draft regulation and is open for public consultation until February 28, 2025.
Under the proposal, companies providing virtual asset services would be prohibited from transferring foreign currency-denominated virtual assets to self-custody wallets.
These proposed restrictions align with the Brazilian government's efforts to increase oversight in the foreign exchange market and regulate capital moving out of Brazil.