Circle Internet Financial has responded to two major regulatory consultations by the Central Bank of Brazil, aimed at shaping the regulatory framework for Virtual Asset Service Providers (VASPs) and integrating virtual assets into the foreign exchange market. Circle supports Brazil's efforts to establish clear, proportional regulations that encourage innovation while ensuring financial stability and consumer protection. The company highlights the importance of clear and predictable regulatory frameworks to enhance competitiveness and attract international fintech firms, advocating for strong reserve requirements for stablecoins and simplified licensing processes to prevent market inefficiencies. Circle emphasizes the need for a risk-based regulatory approach rather than outright restrictions, particularly concerning self-custodied wallets and foreign exchange transactions. The firm also stresses the importance of aligning Brazil's regulations with international standards to facilitate cross-border digital asset transactions. Circle is actively engaging with the Central Bank to help shape a regulatory environment that balances financial stability, consumer protection, and market growth, positioning Brazil as a potential global leader in digital finance.