The president of the Central Bank of Brazil (BC), Roberto Campos Neto, expressed concerns about irregular actions in the crypto market in the country and called for stricter regulation of digital assets given the growth of the industry in Brazil.
Speaking at the Brazilian Parliamentary Finance and Taxation Committee, in the Chamber of Deputies, on September 27, Campos Neto raised concerns related to ‘crypto addictions’, such as tax evasion and illicit activities, which put the sector in a negative light in the country.
In his statement, the BC president highlighted that stablecoins are popular among Brazilian investors.
“There is a perception that local demand has shifted towards stablecoins, which are cryptocurrencies typically linked to real-world assets such as the US dollar, with people using cryptocurrencies more as a means of payment and not just for investment,” said Campos Neto. “We understand that a lot is linked to tax evasion or linked to illicit activities”, he added.
When highlighting the increased interest in crypto in Brazil, Campos Neto assured that the BC, responsible for supervising the sector in the country, will tighten regulations, as well as place exchange activities under its supervision.
It is worth noting that the Central Bank of Brazil reported, on June 21, that the regulation of cryptocurrencies in the country is still under construction.
With Law No. 14,478/2022, the Cryptocurrency Framework, came into force on June 20 and cryptocurrency exchanges, as well as other platforms in the sector, had to adapt to the new rules for operating in Brazil.
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