The Central Bank of Brazil suddenly intervened, and algorithmic stablecoins have been officially banned.

Brazilian Central Bank official Vivian recently stated that algorithmic stablecoins have become a clear taboo. This is not a warning, but a direct ban – trading these types of assets is now prohibited.

Core Information:

Content of the Ban

• Algorithmic Stablecoin trading is completely prohibited.
• Existing contracts remain valid, but no new business can be added.
• Exchanges must conduct risk assessments before customers engage in complex cryptocurrency products.

Tax to be determined

• The cryptocurrency tax policy has not changed yet.
• The specific tax rates and time frame will be defined by the tax authorities subsequently.
• Currently processed according to foreign exchange transaction types

This operation is quite tough. As a major financial power in Latin America, Brazil's attitude will influence the regulatory direction of stablecoins across the entire region. Algorithmic stablecoins have always been controversial due to their mechanism risks, and it seems that compliance pressure is increasing.

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