Brazilian Central Bank Officials: Algorithm-based Stablecoins Have Been Banned

According to Jinshi reports, Brazilian Central Bank official Vivan stated that crypto companies should assess the suitability of their clients before allowing them to engage in complex cryptocurrency-related operations. Algorithm-based stablecoins have been banned, and the buying and selling of these assets is currently prohibited. The agreements reached so far remain valid, but stablecoin activities must cease.

At present, the tax issues related to cryptocurrencies remain unchanged. The definition and timeframe for taxing cryptocurrency transactions equivalent to foreign exchange transactions will be determined by the tax authority.