Brazil Central Bank ex-official launches stablecoin

This week, a former Central Bank of Brazil official announced the launch of a stablecoin pegged to the Brazilian Real, India's Financial Intelligence Unit tightened AML and KYC requirements for crypto exchanges, and Labor MPs in the UK urged the Prime Minister to ban crypto donations to political parties in the upcoming Election Bill.

To learn more, read on.

Former Brazil Central Bank official launches yield-sharing stablecoin

Tony Volpon, the former Deputy Governor for International Affairs at Brazil's Central Bank from 2015 to 2016, announced the launch of the BRD stablecoin through his company, Inovação, on January 6, 2026, during the 'Crypto na Real' program. BRD is pegged to the Brazilian Real, backed by government bonds with daily certification of reserves, and distributes yield to holders.

The stablecoin operates on the Stellar blockchain and targets the remittance market, cross-border payments, and decentralized finance applications. Initial launch focuses on markets with significant Brazilian diaspora populations.

Why this matters:

This development signals growing institutional interest in Real-denominated stablecoins from former regulatory officials, suggesting increasing legitimacy for crypto-native financial products in Brazil's evolving regulatory landscape.

India's Financial Intelligence Unit tightens AML/KYC for crypto

India's Financial Intelligence Unit (FIU-IND) issued new guidelines requiring crypto exchanges to implement enhanced due diligence procedures, including stricter identity verification and transaction monitoring. The guidelines take effect on March 1, 2026.

Key requirements include mandatory video KYC for transactions above ₹50,000 ($600), real-time transaction monitoring systems, and enhanced reporting obligations for suspicious activities. Exchanges must also maintain comprehensive audit trails for a minimum of ten years.

Why this matters:

These requirements bring India's crypto sector closer to traditional financial services compliance standards. Exchanges operating in India will need to significantly upgrade their compliance infrastructure to meet the new requirements.

UK Labor MPs push for a crypto asset political donation ban

Seven senior Labor MPs who chair parliamentary committees sent a letter on January 11, 2026, to Prime Minister Keir Starmer, urging the government to ban crypto donations to political parties in the forthcoming Elections Bill. The signatories cited concerns about transparency, foreign interference, and circumvention of disclosure thresholds.

Should the government ban political cryptocurrency donations, it could deal a significant blow to Nigel Farage's Reform UK Party, which established its own crypto portal in May 2025 and has already received registrable cryptocurrency donations in 2026. The party says that these donations are subject to "enhanced checking". Meanwhile, MPs have warned that cryptocurrency's opacity enables donors to conceal identities and split donations into numerous small payments below legal disclosure limits.

Government sources acknowledged that crypto donations may undermine election integrity, but that implementing restrictions before the imminent publication of the new Elections Bill would be technically complex. Former civil servant Philip Rycroft is currently leading a review of foreign interference in political financing, which examines the role of cryptocurrency in this context. He is due to present his findings in March 2026.

Why this matters:

This move reflects emerging regulatory and political tensions around the global role of cryptocurrency in campaign finance transparency and anti-money laundering controls. Compliance professionals should anticipate increased scrutiny of politically exposed persons and donations from individuals with political connections.

Read more on The Guardian.