Brazil's Central Bank (BCB) has proposed regulations that would prohibit the transfer of foreign-backed stablecoins to self-custody wallets, aiming to align the nation’s crypto operations with traditional financial frameworks. Announced on November 29, the draft regulation specifically targets stablecoins pegged to foreign currencies, such as USD-backed tokens. Under the proposed rules, crypto exchanges in Brazil would be barred from enabling users to withdraw these assets into wallets they control directly, a move intended to mitigate risks related to investor protection, cybersecurity, and financial stability. While the BCB acknowledges the advantages of stablecoins—such as improving cross-border payment…