[IMF: Brazil's Crypto Cross-Border Capital Flows Surpass Traditional Capital Movements] Odaily Planet Daily News - The International Monetary Fund (IMF) stated in its Financial System Stability Assessment report released this month that Brazil's crypto-based cross-border capital flows have been steadily increasing since 2017, surpassing traditional capital movements in scale. The report noted that these flows are primarily driven by stablecoins, with businesses and retail users utilizing stablecoins due to efficiency and tax-related factors. Stablecoin flows 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 uncertainties, and changes in tax policies. The IMF highlighted that while Brazil's central bank has taken measures to regulate the Virtual Asset Service Provider (VASP) industry, there are still shortcomings in areas such as customer legal protections and the segregation of custodial assets. Comprehensive implementation of international standards, such as the travel rule, is still needed in the areas of anti-money laundering and combating the financing of terrorism (AML/CFT). The report pointed 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 a more robust reporting mechanism. Brazil's Congress is preparing to review Bill 4308/2024, which aims to regulate the status of stablecoins.