This week provided a glimpse of what the global crypto regulatory ecosystem might look like in the near future, as the Central Bank of Brazil, the largest economy in Latin America, announced the imminent introduction of new regulations governing virtual assets and cryptocurrencies. Meanwhile, in the UK, the Bank of England published a consultation paper introducing its proposed stablecoin regulatory regime and inviting comments. And in Europe, the FinTech company Circle’s EU Strategy and Policy Director smoothed feathers ruffledby aspects of theregion’s incoming anti-money-laundering regulation, due to be implemented in mid-2027.
To learn more, read on.
Central Bank of Brazil set to expand AML/CFT regulations for virtual assets in 2026
The central bank of Brazil, the largest economy in the Latin American (LATAM) region, announced the extension of its anti-money laundering and countering the financing of terrorism (AML/CFT) regulations for virtual asset service providers on Monday, November 10, 2025. The expanded rulesetis scheduled to come into effect in February 2026.
Although Brazil adopted a legislative framework for virtual assets, including cryptocurrencies, in 2022, it has been awaiting supplementary regulations from the Central Bank before implementation, during which time crypto adoption and usage have increased dramatically.
Four public consultations and several years later, the Central Bank has responded with rules, which, according to Gilneu Vivan, Director of Regulation, will “reduce the scope for scams, fraud, and the use of virtual asset markets for money laundering.”
The new regulations will govern authorization and compliance for foreign exchange, securities brokers, distributors, and virtual asset service providers. It will also classify stablecoin transactions and other virtual asset exchanges tied to fiat currencies as foreign exchange operations. This classification also encompasses cross-border crypto payments made via credit or debit cards, as well as other electronic transaction methods.
The updated framework will apply existing rules on transparency, customer protection, and AML/CFT measures, while introducing new requirements for governance, security, internal controls, and reporting related to virtual assets and cryptocurrencies.
Why this matters:
After a four-year wait for regulatory clarity amid surging crypto usage, the direction of Brazil’s Central Bank heralds exciting times ahead for the country’s virtual asset industry, and likely LATAM in general, as Brazil is the region’s biggest economy. Meanwhile, stablecoin issuers, investors, and their respective compliance teams, both within Brazil and abroad, should take note of its classification of fiat-backed crypto transactions as ‘foreign exchange operations’ and strategize accordingly.
Read more on Reuters.
UK’s Bank of England publishes consultation paper on systemic stablecoin regulation proposals
The UK’s Bank of England(BoE)published its initial consultation paper on its proposed regime for regulating the trading of sterling-backed, systemic stablecoins on March 10, 2025.
BoE consolidated feedback from its November 2023 Discussion Paper into the systemic stablecoin consultation paper, outlining a sustainable and robust regime in line with the UK’s broader National Payments Vision, which aims to update the country’s retail payment system.
Key aspects of the proposals, which the Bank’s Deputy Governor of Financial Stability, Sarah Breeden, described as “fit for a future where stablecoins play a meaningful role in payments, giving the industry the clarity it needs to plan with confidence,” included:
- Backing Assets: Systemic stablecoin issuers may hold up to 60% of their backing assets in short-term UK government debt, with the remaining 40% kept in unremunerated accounts at the BoE to ensure stability and redemption. Eligible issuers deemed systemic can initially hold up to 95% of their assets in government debt. The BoE is also exploring liquidity support arrangements to bolster financial stability during market stress.
- Holding Limits: Proposals include temporary holding limits of £20K per coin for individuals and £10M for businesses to protect credit access while the legitimate economy transitions to digital money, with exemptions for the largest firms. These limits will subside as risks diminish and do not impact stablecoins used in the BoE and Financial Conduct Authority’s (FCA)Digital Securities Sandbox. The consultation paper further invited feedback on alternative safeguard proposals to manage such risks.
Meanwhile, the FCA will supervise so-called ‘non-systemic’ stablecoins, such as those used to buy or sell crypto assets, which is how most stablecoins are currently being used.
Feedback on the proposals is invited until February 10, 2026.
Why this matters:
The UK government’s approach to safely integrating digital currencies into its economic apparatus appears to strike a balance between caution and innovation. However, having different regulating authorities and rules for systemic and non-systemic stablecoins, as well as for those transitioning from one regime to another, could pose a challenge to issuers, their compliance teams, and regulators alike.
Read more on bankofengland.co.uk, and for further insights on how to maximize your stablecoin assets, visit us here.
Circle EU’s Strategy and Policy Director allays ‘fear, uncertainty and doubt’ about AMLR 2027
The Circle EU’s Strategy and Policy Director, Patrick Hanson, took to Twitter to debunk some of the ‘fear, uncertainty, and doubt’ clouding the facts surrounding the economic region’s planned implementation of its anti-money laundering regulation (AMLR) for member states on July 10, 2027.
He bluntly responded to social media claims that the incoming AMLR will end self-custody wallets and stop anonymous crypto transactions by stating, “That’s wrong.”
Addressing concerns, he emphasized that AMLR 2027 buttresses current AML/CFT practices, rather than imposing new ones. For instance, the AMLR will only apply to crypto asset service providers (CASPs), likely with limited impact, rather than affecting individuals’ right to self-custody wallets.
He further clarified that:
- AMLR 2027 will not ban peer-to-peer transactions or private wallets.
- It excludes compliance requirements for hardware and software wallets.
- CASPs and exchanges will only be expected to follow current AML rules.
- A €10K cash transaction threshold will be enforced, although member states can impose stricter limits if needed.
Hanson did, however, add that earlier AMLR drafts had been draconian, and that past “education and advocacy efforts” by an engaged crypto industry had improved its current and future outlook in the EU.
While AMLR 2027 still awaits final European Parliamentary approval, Hanson also cautioned that the unresolved issues between MiCA and the revised Payment Services Directive (PSD2) could “double compliance costs” for regional stablecoin issuers by 2026.
Why this matters:
Hanson’s clarification is vital for crypto exchanges and compliance officers because it reduces uncertainty about the AMLR’s scope, confirming it targets service providers, not individual users. Meanwhile, regulators can gain insight into how social media can sometimes paint them, as well as how they might best balance innovation with AML/CFT requirements that will keep the EU financial system both safe and viable.
Read more on Yahoo Finance.
