The Brazilian Central Bank has just announced a major set of rules to bring virtual asset services under formal regulation. This was achieved after more than a year of public consultation with feedback from cryptocurrency companies, financial institutions, associations, law firms, individuals, and even international organizations.
These changes are a major move towards clearer and stronger regulation as Brazil solidifies its position as Latin America’s crypto leader. Here’s everything you need to know.
New rules for virtual currency companies
The central bank has introduced clear guidelines for companies wanting to offer cryptocurrency services in Brazil.
Under the new framework, only existing institutions and new companies established specifically for cryptocurrency activities, with central bank approval, will be able to provide virtual asset services. These service providers are grouped into three main categories: intermediaries, custodians, and brokers.
They must meet strict standards such as customer protection, transparency, governance, cybersecurity, anti-money laundering, and internal controls.
License rules and transition period
The new regulations also explain how cryptocurrency businesses can apply for an operating license. The licensing process has been updated to include related sectors such as foreign exchange and stock brokers.
Companies already operating in the Brazilian cryptocurrency market will have a transition period to apply for authorization and adapt to the new standards.
Virtual currency and foreign exchange rules
Another important change is that some cryptocurrency transactions will now be treated like regular Forex transactions. This includes:
- international payments or transfers made using crypto assets;
- Cryptocurrency transactions related to overseas purchases or card payments;
- Transfers to and from self-custody wallets, and
- Buying and selling digital assets tied to fiat currencies
Companies handling these transactions must identify wallet owners and keep records of funds coming in and going out. If a payment or transfer of virtual assets involves an unauthorized party, the amount is limited to $100,000 per transaction.
Tightening rules to address fraud risks
Policymakers note that stablecoins are now being used more for everyday payments than for investments, as users avoid traditional payment systems that are heavily regulated and taxed.
As the use of cryptocurrencies rapidly increases, central bank governor Gabriel Garipolo has expressed concern that stablecoins are increasingly being used for illegal or unregulated activities.
Gilnew Vivant, the central bank’s director of regulation, said the new rules will reduce the scope for the use of virtual asset markets for fraud, fraud and money laundering.
The rules also regulate how cryptocurrencies can be used in foreign loans and investments in Brazil. The goal is to make these operations more efficient and transparent, close regulatory gaps, and protect the nation’s financial data.
The regulation will take effect in February 2026, and businesses will have until November 2026 to fully comply with the requirements.
Brazil’s virtual currency market continues to grow
Brazil also stands out as Latin America’s largest player in digital assets.
According to a recent Chainalysis report, Brazil will move approximately $318.8 billion in cryptocurrencies from July 2024 to June 2025, representing about one-third of the entire Latin American crypto market.
Its cryptocurrency market grew more than 100% year over year, driven by both institutional and retail investors. Stablecoins play an important role accounting for over 90% of domestic cryptocurrency activity.
This shows that Brazil’s crypto economy continues to grow rapidly and remains a regional leader in digital asset adoption and activity.
Brazil is moving rapidly to make its burgeoning cryptocurrency market safer and more organized. The new rules aim to make cryptographic services clearer, safer and more reliable while ensuring better oversight.
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