Brazilian Rapporteur Jadyel Alencar called a public hearing on Bill 4308/2024 to determine the regulatory framework for stablecoins in Brazil. The bill, introduced in 2024 by Deputy Aureo Ribeiro, proposes rules for stablecoin issuance and use. Abcripto, Brazil's main crypto industry association, issued a technical note urging lawmakers to maintain stablecoins' current classification as digital assets rather than electronic money. The debate centers on whether stablecoins should fall under existing electronic money regulations established by Bill 12.865/2013 or remain under the digital asset framework while Brazil develops specific stablecoin oversight rules.
Abcripto Advocates Digital Asset Classification in Technical Note
Abcripto introduced a technical note advocating for maintaining the current classification of stablecoins as digital assets. The association stated that considering stablecoins as electronic money would introduce uncertainty and regulatory conflicts. Julia Rosin, President of Abcripto, declared that the contribution seeks to offer technical support for the improvement of the project, preserving legal certainty, innovation, and Brazil's ability to compete in an increasingly internationalized market, without compromising user protection and adequate regulatory oversight.
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The organization argues that stablecoin issuers don't necessarily manage user funds and just issue and destroy tokens in creation-redemption processes, which differs from electronic money currently regulated by Bill 12.865/2013. Abcripto believes that stablecoins should be under the oversight of the central bank, but without changing their classification. Rosin stressed that this is an opportunity for Brazil to align with global digital economy trends and avoid the pitfalls that jurisdictions that have chosen to classify stablecoins as electronic money, like the European Union, face.
Bill 4308/2024 Proposes Central Bank Oversight Framework
Congress will consider Bill 4308/2024 in a public hearing at the request of Rapporteur Jadyel Alencar. The hearing will have the presence of a representative from the central bank, a representative from Abcripto, and others. The hearing will allow deputies to obtain a qualified opinion for the analysis of the matter, ensuring that the eventual regulatory framework for stablecoins is capable of reconciling innovation, legal security, user protection, and economic development.
According to data released by the Central Bank of Brazil, stablecoin purchases comprised $6.8 billion of the $6.9 billion in crypto purchases registered in Q1. Bill 4308/2024 was introduced to regulate stablecoins and their issuance and use in Brazil.
Industry Association Maintains Active Role in Regulatory Process
Abcripto has maintained an active participation in the regulatory process around stablecoins. The association proposed to sue the federal government if it establishes stablecoin taxation via decree back in January. The organization's technical note represents its latest intervention in shaping Brazil's approach to stablecoin regulation.
FAQ
What did Jadyel Alencar do regarding Bill 4308/2024?
Jadyel Alencar, serving as Rapporteur, called a public hearing on Bill 4308/2024 to determine the regulatory framework for stablecoins in Brazil. The hearing will include representatives from the central bank and Abcripto to allow deputies to obtain qualified opinions for analysis of the matter.
Why does Abcripto oppose classifying stablecoins as electronic money?
Abcripto issued a technical note stating that considering stablecoins as electronic money would introduce uncertainty and regulatory conflicts. The association argues that stablecoin issuers don't necessarily manage user funds and just issue and destroy tokens in creation-redemption processes, which differs from electronic money regulated by Bill 12.865/2013.
How much did stablecoin purchases represent in Brazil's Q1 crypto market?
According to data released by the Central Bank of Brazil, stablecoin purchases comprised $6.8 billion of the $6.9 billion in crypto purchases registered in Q1.
