Crypto exchange opposes the self-supporting ban on stubcoins in Brazil

The Crypto actor has over-proclaimed the ban proposal led by the Brazilian Central Bank, explaining that the move could encourage businesses to run offshore. Alternative proposals have also emerged recently to replace the proposed ban with a reporting system.

The exchange says a proposal to ban self-sustaining stubcoin could push the code off the coast of Brazil

The proposal to ban the withdrawal of stubcoins to Brazil’s independent wallets has gained heat from exchanges that it considers to be an overkill. Interactions like Binance have been working with the central bank for several months to propose alternatives that alleviate government concerns while avoiding the establishment of such a ban.

Binance is one of the exchanges that advocate for a system in which exchanges allow exchanges to report customer movements and transactions, avoiding the need for a complete ban.

Thiago Salandi, the legal chief of Brazilian and El Salvador’s regulating liberal chief of vinance, said that the nature of the blockchain makes this effective when central banks establish partnerships with blockchain analytics companies to determine the fate of the funds for each transaction.

As a result, this could support central banks’ progressive money laundering and tax evasion efforts in this regard. “Central banks must remove this ban completely and have some reporting in place so that transactions can be tracked,” he emphasized.

Baptista Luz Advogados partner Cesar Carvalho highlighted his talk to the central bank about the outcome of enacting the proposal, commenting that it could affect constitutional guarantees. He declared:

“This complete prohibition is disproportionate and extremely excessive. Independence and the principles behind it incorporate constitutional rights, such as the rights of property. They are the constitutive principles of our democracy.”

Finally, Guilherme Sacamone, head of Okex in Brazil, noted that the measure could push exchanges out of the country. “You only hit people who were trying to work in the rules,” he concluded.

Gabriel Garripolo, the current president of the Central Bank of Brazil, said that it connects the code with illegal activities and that people use it to maintain a “opaque vision for taxation and money laundering.”

Read more: Links to tax evasion and money laundering for Brazil’s central bank Links Zentecoin’s growth