IMF has called for closer oversight of Brazil’s stablecoin market as cross-border crypto flows outpace traditional capital movements.
Summary
- The IMF has urged Brazil to strengthen oversight of stablecoins as cross border crypto flows continue to grow faster than traditional capital movements.
- The fund said Brazil’s crypto market has become more connected with the financial system while gaps remain in stablecoin rules, customer protection and AML compliance.
- IMF analysis found stablecoin purchases are two to three times more sensitive to global shocks than portfolio investment and foreign direct investment.
- Brazil already bars virtual assets from settling payments…
