The Central Bank of Brazil has proposed banning local crypto exchange traders from withdrawing stablecoins to their own wallets, arguing that it is necessary to combat money laundering and tax evasion. Regulators note the difficulties in tracking transactions when using third-party wallets. However, this proposal has drawn sharp criticism from the crypto industry, in particular from the Coinbase exchange.

Coinbase issued a statement that such restrictions would harm the legitimate use of stablecoins, including international settlements, salary payments, and everyday payments. Exchange representative Tom Duff Gordon warned that the ban on self-custody will increase risks for users, as the concentration of funds on exchanges will make them a more attractive target for hackers.

Instead of radical bans, Coinbase suggests that regulators focus on improving AML/KYC mechanisms and blockchain monitoring tools. According to Bitso research, stablecoins USDT and USDC are extremely popular in Latin America, and accounted for 39% of the total volume of purchases on the exchange in 2024.