IMF: Brazil's Crypto Cross-Border Flows Have Surpassed Traditional Capital Movements
2026-07-28 07:33
Odaily Odaily Planet Daily reports that the International Monetary Fund (IMF), in its financial system stability assessment report released this month, stated that Brazil's cryptocurrency-based cross-border capital flows have been growing steadily since 2017 and have now surpassed traditional capital movements.
The report notes that these flows are largely driven by stablecoins, used by both corporations and retail investors for efficiency and tax-related reasons. Stablecoin movements are correlated with international and local investment indicators such as the S&P 500, VIX, and Bitcoin prices, and are also influenced by exchange rates, interest rates, policy uncertainty, and changes in tax policies.
The IMF stated that the Central Bank of Brazil has taken measures to regulate the virtual asset service provider (VASP) industry, but gaps remain in areas such as client legal protection and segregation of custodial assets. In terms of anti-money laundering and combating the financing of terrorism (AML/CFT), full implementation of international standards like the Travel Rule is still needed.
The report points out that Brazil's crypto system is interconnected with the traditional financial system, and regulators need to collaborate with domestic and international counterparts to establish more robust reporting mechanisms. The Brazilian Congress is preparing to deliberate Bill 4308/2024 to regulate the status of stablecoins.
The report notes that these flows are largely driven by stablecoins, used by both corporations and retail investors for efficiency and tax-related reasons. Stablecoin movements are correlated with international and local investment indicators such as the S&P 500, VIX, and Bitcoin prices, and are also influenced by exchange rates, interest rates, policy uncertainty, and changes in tax policies.
The IMF stated that the Central Bank of Brazil has taken measures to regulate the virtual asset service provider (VASP) industry, but gaps remain in areas such as client legal protection and segregation of custodial assets. In terms of anti-money laundering and combating the financing of terrorism (AML/CFT), full implementation of international standards like the Travel Rule is still needed.
The report points out that Brazil's crypto system is interconnected with the traditional financial system, and regulators need to collaborate with domestic and international counterparts to establish more robust reporting mechanisms. The Brazilian Congress is preparing to deliberate Bill 4308/2024 to regulate the status of stablecoins.
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