Industry leaders, including Binance, have spent months engaging with the central bank to offer alternatives. These exchanges argue that a full ban would be an overreach and seek a solution that balances security concerns with industry needs.

Binance Offers a Transparent Reporting Solution

Instead of a total ban, Binance proposes a system that would allow exchanges to report users’ movements and transactions. Thiago Sarandy, Binance’s regulatory legal head in Brazil, believes this would help track transactions effectively. By partnering with blockchain analysis companies, the central bank could monitor fund destinations without imposing strict restrictions on self-custody.

Sarandy emphasized that such a reporting system would enhance Brazil’s anti-money laundering and tax evasion efforts without unnecessarily punishing users or exchanges. He called for a shift from prohibition to transparency, stating, “The central bank should remove this ban and implement tracking instead.”

Legal Concerns Over the Ban’s Impact on Rights

Legal experts have raised alarms over the constitutional implications of the proposed ban. Cesar Carvalho, a partner at Baptista Luz Advogados, argues that restricting self-custody infringes on fundamental rights like the right to property. He warns that such a move could undermine Brazil’s democratic principles.

“A total ban violates constitutional rights and undermines the freedoms that define our democracy,” Carvalho said, questioning the fairness of such a sweeping measure.

The Risk of Pushing Exchanges Out of Brazil

Guilherme Sacamone, head of OKEx in Brazil, also voiced concerns about the ban’s potential impact. He believes that the policy could drive exchanges to leave the country, which would harm Brazil’s reputation in the crypto world. “This would only hurt those trying to comply with the law,” Sacamone said, warning that the ban would encourage businesses to move elsewhere.

The post Exchanges Oppose Brazil’s Stablecoin Withdrawal Ban Proposal appeared first on Coindoo.

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Filed under: Bitcoin - @ May 18, 2025 2:16 pm