The governor of Banco Central do Brasil, Brazil's central bank, said the bank has noted a significant increase in cryptocurrency adoption in the country and intends to react by tightening regulation of digital assets.
During his speech At the parliamentary Committee on Finance and Taxes on September 27, Roberto Campos Neto reported on the increase in “cryptocurrency imports” by Brazilians. According to central bank data, cryptocurrency imports increased by 44.2% from January to August 2023 compared to 2022. Total funds amounted to about 35.9 billion Brazilian reais ($7.4 billion ).
Related: Brazilian legislators seek to add cryptocurrencies to the list of protected assets for debtors
Campos Neto separately highlighted the popularity of stablecoins, which he said are used more for payments than investments. He said the bank will respond to these trends by tightening regulation and putting crypto platforms under its supervision. He added that problems related to cryptocurrencies could include tax evasion or illicit activities:
"We understand that many things are related to tax evasion or illicit activities."
Brazil gave the central bank a primary role in crypto regulation in June 2023. However, token projects that qualify as securities continue to fall under the purview of the Comissão de Valores Mobiliários, the Brazilian equivalent of the US Securities and Exchange Commission.
The Brazilian central bank is also working on its own digital currency, Drex. In August he revealed the brand and logo of the central bank's digital currency. In a previous controversy, Brazilian blockchain developer Pedro Magalhães allegedly discovered features in the Drex code that would allow a central authority freeze funds or reduce balances.
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