Brazil has enacted new regulations that classify stablecoins as foreign currencies, bringing them under the country's foreign exchange laws. This policy shift subjects stablecoins to financial standards, anti-money laundering (AML) practices, and know your customer (KYC) procedures. The move aims to create a safer environment for cryptocurrency transactions and could boost institutional investment while stabilizing forex markets. However, the new regulations also pose challenges, such as requiring crypto exchanges to overhaul their systems to comply with the updated legal framework.