Introduction to New Regulations

Brazil’s central bank has introduced new regulations aimed at tightening oversight of digital asset firms operating in the country. The regulations, which were unveiled earlier this week, require local crypto service providers to obtain central bank authorization in order to continue operations. These service providers are categorized into three types: virtual asset intermediaries, custodians, and brokers.

The new rules build on existing financial sector regulations, extending requirements related to customer protection, internal governance, and the prevention of illicit activities such as money laundering and terrorism financing. These rules also emphasize the need for crypto firms to implement robust risk management systems, cybersecurity measures, and incident response protocols. Companies that meet these criteria will be eligible for the central bank’s approval to operate in Brazil’s evolving digital asset landscape.

New Requirements Aim to Combat Financial Crime

According to the central bank’s announcement, the regulations also address the use of fiat-pegged stablecoins and virtual assets for international transactions. These activities will now be subject to foreign exchange market regulations. Additionally, transactions involving unauthorized parties will be limited to $100,000, aiming to reduce risks associated with scams and other illicit operations in the crypto sector.

Gilnew Vivan, the central bank’s director of regulation, explained that the new rules are designed to enhance Brazil’s efforts to curb fraud, money laundering, and financial crimes associated with cryptocurrency transactions. This marks a significant step in the country’s effort to regulate its growing crypto market while ensuring the safety of consumers and the integrity of financial transactions.

Brazil’s Crypto Market Remains a Regional Powerhouse

Brazil continues to lead the Latin American region in cryptocurrency adoption, ranking fifth globally in the latest Chainalysis Global Crypto Adoption Index. Between July 2024 and June 2025, Brazil accounted for nearly one-third of all crypto activity in Latin America, a reflection of the nation’s growing interest in digital assets. Stablecoins, in particular, make up a significant portion of the market, with about 90% of the country’s crypto flow linked to these assets.

The central bank’s new rules are expected to help position Brazil as a key player in the global crypto space, ensuring that its market remains secure and well-regulated. With these measures set to come into effect in 2026, the Brazilian government is giving crypto firms ample time to comply. However, failure to meet these standards by November 2026 will result in the cessation of operations, emphasizing the importance of regulatory compliance for the country’s digital asset businesses.