Brazil is experiencing record-breaking demand for cryptocurrencies and stablecoins. In the first half of 2026, purchases of crypto assets reached $14.68 billion, a 135% increase from the same period in 2025. While official central bank statistics only capture registered provider transactions, they indicate accelerating adoption. The surge is largely driven by stablecoins, which accounted for over 90% of demand, highlighting a market shift from earlier dominance by volatile assets like Bitcoin. These dollar-pegged stablecoins are popular for payments and cross-border settlements. This expanding usage even prompted government consideration of a 3.5% tax on stablecoin transactions, though the proposal was postponed due to the electoral cycle. The Central Bank views the market as consolidating and moving past its initial phase. To enhance oversight, it has classified Virtual Asset Service Providers (VASPs) under the same regulatory requirements as securities brokers, with this new regime set to take effect in January 2027. This will provide authorities with a clearer picture of where these assets flow.
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