IMF says Brazil’s fast-growing crypto market needs stronger regulation

Brazil’s cryptocurrency market is expanding rapidly, but its weak regulatory framework needs urgent strengthening, according to the International Monetary Fund, or IMF. In a recent Financial System Stability Assessment report, the IMF said Brazil’s cross-border crypto transaction volume has surpassed traditional cross-border capital flows. It added stricter oversight is needed, while the current regulatory framework remains inadequate and leaves investor protection vulnerable. Given the crypto market’s close links with the traditional financial system, the IMF said Brazil should strengthen rules including segregated custody of customer assets and implementation of the Travel Rule, while also enhancing cross-border regulatory cooperation.