Brazil’s congressional committee has recently passed Bill 4,308/2024 aimed at enhancing oversight over stablecoins. The new law mandates that all stablecoins must be fully backed by reserves, effectively prohibiting unbacked tokens like Ethena’s USDe and Frax. Issuers of unbacked coins could potentially face up to eight years in prison, while exchanges dealing with foreign stablecoins such as USDT and USDC are required to adhere to stringent compliance and risk regulations. This legislative development is poised to significantly impact Brazil’s cryptocurrency market.
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