Brazil wants to ban stablecoin self-custody?

Brazil’s Central Bank wanna ban stablecoin self-custody. They’re cooking up a plan that’s got the crypto world raising some serious eyebrows.

Because they want to ban people from withdrawing stablecoins to their own self-custody wallets.

Maybe the stupidest idea since the beginning of time. It’s like telling you, hey, you can’t keep your own money in your own safe. And people are like, the f*ck you are?

Total control

Now, the big players in crypto industry, the exchanges like Binance and OKEx, they’re not taking this lying down.

They say this ban? It’s overkill. Excessive. And worse, it might just push the whole crypto business offshore. Poof! Gone from Brazil, just like that. Binance has been talking to the Central Bank for months, trying to find a middle ground.

They’re pushing for a system where exchanges report customer transactions instead of outright banning self-custody. Makes sense, right? Keep an eye on the money flow without stripping people of their rights.

Thiago Sarandy, Binance’s legal head for Brazil, says blockchain tech itself can help track where the money’s going if the Central Bank teams up with blockchain analysis firms.

This way, they can fight money laundering and tax evasion without playing Big Brother.

Then there’s Cesar Carvalho, a legal eagle from Baptista Luz Advogados. He’s waving a big red flag about constitutional rights.

“A total ban like this? Disproportionate and excessive.”

Self-custody isn’t just some fancy tech term in this case, it’s tied to fundamental rights like property ownership.

Messing with that? You’re messing with democracy itself.

The same track, again

And Guilherme Sacamone, the guy running OKEx in Brazil, he’s got a blunt message, saying that this ban could make exchanges pack up and leave.

Why stay and play by the rules if the rules are rigged against you? It’s like running a business in a city where the cops keep shutting you down for no good reason.

On the other side of the ring, Gabriel Galipolo, the Central Bank’s president, isn’t shy about his view. He’s linking crypto to shady business, tax dodging, money laundering, the whole nine yards. He says people use crypto to keep things opaque.

Well, sure, some do. But painting the whole scene with that brush?

That’s like saying every guy in a suit’s a mobster. Or maybe he didn’t get the memo why they call it public ledger.

Access granted

So, Brazil’s crypto scene is at a crossroads. Do they clamp down hard and risk pushing innovation and business away?

Or do they find smarter ways to regulate without killing the golden goose?

Exchanges are making it clear, this ban ain’t the answer. It’s a sledgehammer where a scalpel’s needed.

And for the everyday crypto user? When governments start telling you how you can hold your own money, that’s when you gotta start paying attention.

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