Brazil’s central bank has finalized rules that will place crypto companies under bank-style supervision, classifying stablecoin transactions and certain self-custodial wallet transfers as foreign exchange operations.
Based on resolutions 519, 520 and 521 issued on Monday, the Brazilian Central Bank (BCB) established operating standards and licensing procedures for a new category of licensed virtual asset service providers operating in the country, called Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAV).
The framework extends existing rules on consumer protection, transparency, and anti-money laundering (AML) to crypto brokers, custodians, and intermediaries.
The rules will come into effect on February 2, 2026, and reporting requirements for capital markets and cross-border operations are scheduled to begin on May 4, 2026.
Stablecoin based on foreign exchange rules
Pursuant to Resolution 521, the purchase, sale, and exchange of virtual assets pegged to fiat currency, including international remittances and payments using such assets, will be treated as foreign exchange (FX) operations.
This classification subjects stablecoin activities to the same scrutiny as cross-border remittances and currency transactions.
Licensed foreign exchange institutions and new SPSAVs can perform these operations subject to documentation and value restrictions. According to the BCB, transactions with unlicensed foreign counterparties will be limited to $100,000 per transfer.
This rule also captures transfers to and from self-custodial wallets when mediated by a service provider. This means that even if the transfer itself does not cross borders, providers must maintain processes to identify the wallet owner and verify the source and destination of the assets.
This provision extends AML and transparency obligations to areas previously considered outside the scope of regulated finance.
While the rule does not explicitly prohibit self-custody, it fills an important reporting gap and forces regulated exchanges and brokers to treat wallet interactions like formal FX operations.
BCB says its goal is to promote efficiency and legal certainty
In the announcement, BCB said its goals are to ensure “improved efficiency and legal certainty,” prevent regulatory arbitrage, and align cryptocurrency activity with national balance of payments (BoP) statistics, which means making stablecoin transfers visible in official financial data.
The move follows months of public consultation and growing concerns from the central bank about the advantages of using stablecoins in Brazil. On February 7, BCB President Gabriel Garipolo said that around 90% of cryptocurrency activity in Brazil involves stablecoins, primarily used for payments.
Garipolo said the widespread use of stablecoins in payments raises regulatory and oversight challenges, particularly in areas such as money laundering and taxation.
Brazil’s central bank said the new framework aims to curb fraud and illegal activities while bringing legal transparency to the cryptocurrency market.
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New rules could impact small cryptocurrency businesses
But for crypto builders, this could raise compliance costs and reshape the way local platforms interact with global liquidity. Smaller crypto players will now be forced to compete with larger institutions and meet more comprehensive bank-level standards.
The rules will officially take effect in February 2026, but market participants are expected to begin restructuring by then.
For Brazil, which has the second-largest cryptocurrency activity in Latin America after Argentina, the new regulations signal a decisive shift from experimentation to integrated surveillance.
The new rules show that cryptocurrencies are welcome in Brazil’s financial ecosystem, but must follow the same rules as fiat currencies.
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