Brazil’s Central Bank Moves to License All Crypto Providers

Brazil’s central bank has announced a major regulatory overhaul for digital asset service providers (VASPs), extending anti-money laundering (AML) and counter-terrorism financing (CTF) standards to the country’s booming crypto sector.

The new framework, which takes effect in February 2026, marks a decisive step in Brazil’s effort to integrate digital assets into its formal financial system while minimizing illicit activity. With crypto adoption surging nationwide, regulators are seeking to strengthen transparency and accountability in a market valued at $319 billion.

Under the new rules, all companies offering crypto-related services—including exchanges, brokers, custodians, and intermediaries—must obtain formal authorization from the Central Bank of Brazil before operating legally.

The framework introduces tighter standards for governance, cybersecurity, internal controls, and risk management, effectively placing digital asset firms under the same scrutiny as traditional banks. It also mandates greater transparency around customer data, operational security, and fund flows to deter money laundering and financial misconduct.

Firms will be given until November 2026 to comply with the new authorization requirements. Those failing to meet the deadline risk being ordered to suspend or shut down operations entirely.

Officials at the central bank said the reforms aim to ensure Brazil’s crypto industry grows within a secure and transparent regulatory environment—one that supports innovation while aligning with global standards.

The initiative builds on Brazil’s 2022 crypto law, which laid the legal foundation for virtual assets but required detailed guidance from the central bank to be fully implemented.

Stablecoins Redefined as Foreign Exchange Operations

A key element of the new framework involves the reclassification of stablecoin and cross-border crypto transactions. Under the updated policy, the purchase, sale, or exchange of fiat-pegged stablecoins will now be treated as foreign exchange operations.

This means that stablecoin payments, remittances, or settlements conducted across borders fall under the same regulatory scope as traditional currency exchanges. The move reflects growing concern among Brazilian authorities about the increasing use of stablecoins for everyday payments and international transfers, rather than mere investment vehicles.

In cases where such transactions involve unauthorized counterparties, they will be subject to a $100,000 cap, according to the central bank.

The rule is intended to curb the flow of untraceable funds and prevent stablecoin-based systems from becoming parallel payment networks outside official oversight. It also aims to ensure that digital assets used for commerce or transfers adhere to Brazil’s broader monetary and financial policies.

By clarifying the treatment of stablecoins, the central bank hopes to bring structure to a space that has grown faster than the regulatory capacity to manage it.

Strengthening Brazil’s Role in the Global Crypto Economy

Brazil’s central bank views these reforms as more than just compliance measures—they represent a broader effort to position the country as Latin America’s regulatory leader in digital finance.

According to Chainalysis, Brazil ranked fifth globally in total crypto transaction volume between mid-2024 and mid-2025, with roughly $319 billion in assets traded. That figure represents about one-third of all crypto activity in Latin America, underscoring the country’s growing influence in global digital finance.

The new framework is expected to bolster investor confidence, enhance financial stability, and make Brazil’s fast-growing crypto economy more resistant to fraud and volatility.

At the same time, the country’s policymakers are exploring even bolder moves. Lawmakers are currently debating the creation of a $19 billion Bitcoin reserve, known as RESBit, designed to diversify Brazil’s financial holdings and reduce reliance on the U.S. dollar.

Introduced under Bill 4501/24, the proposal envisions Bitcoin as a strategic commodity, similar to gold, capable of hedging against inflation and currency devaluation. If approved, Brazil would join a small group of nations, including El Salvador, that have formally integrated Bitcoin into their national financial strategies.

The plan places both the Central Bank of Brazil and the Finance Ministry in charge of managing the reserve, with biannual reports on performance and risk exposure to maintain transparency. However, the proposal still faces a lengthy legislative process, requiring approval from several congressional committees before it can reach the Senate.

Together, these measures—tightened regulation and potential state-level Bitcoin adoption—illustrate Brazil’s unique approach to digital finance: combining strong oversight with strategic innovation.

As the global crypto landscape evolves, Brazil’s new framework could serve as a model for emerging markets balancing growth, regulation, and financial sovereignty in the age of digital assets.