Coinbase, a leading cryptocurrency exchange, has voiced strong opposition to Brazil's proposed regulations on stablecoins. Aimed at curbing illicit activities, the measures could hinder innovation and decentralized finance in the region.
Coinbase Criticizes Brazil's Proposal
Tom Duff Gordon, Coinbase's Vice President, criticized the Central Bank of Brazil's approach, stating that it could stifle innovation and harm users relying on stablecoins for financial operations.
Coinbase Offers Safer Alternatives
As part of the public consultation process, Coinbase proposed solutions to address the central bank's concerns about money laundering (AML) and know-your-customer (KYC) practices without banning withdrawals.
Why Brazil Is Targeting Stablecoins
Brazilian authorities are concerned about the rise of stablecoins in remittances and their potential use for tax evasion and money laundering. To address these concerns, they floated the idea of taxing stablecoin transactions and banning withdrawals to untraceable wallets.
Coinbase's response highlights the need for balanced regulations that promote innovation while addressing security risks. The company's stance underscores its commitment to shaping policies that support global crypto adoption without compromising user freedom.
