Brazil tightens crypto oversight with new rules requiring authorization, stronger compliance, and enhanced monitoring to curb illicit activity across digital asset firms.
Brazil’s central bank took a firm step toward stronger crypto supervision on Monday. The authority released new rules focused on more strict monitoring and inhibiting illegal activities throughout the country’s burgeoning digital assets sector.
New Resolutions Redefine the Crypto Rulebook
According to the announcement, the rules provide mandatory authorization of all virtual asset service providers. In addition, the framework classifies these providers as intermediaries, custodians or brokers. These classifications make a previously fragmented market a bit more organized. Additionally, the Central Bank laid down very clear conditions for the operation under the new system.
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Furthermore, the institution explained the scope of services of virtual assets that fall under foreign exchange regulations. It provided instruction by means of BCB Resolutions 519, 520, and 521. These resolutions were published following long consultation by the regulated sectors, law firms, associations as well as global contributors. The process emphasised the need for transparency and market inclusion.
Resolution 519 determines who can carry out virtual asset services and establishes the category of SPSAV. These companies must adhere to strict governance protocols. Customer protection, security controls and anti-money laundering procedures have now become mandatory. As a result, the service providers have increased expectations in terms of regulation. The rule will go into effect on February 2, 2026.
Authorization Requirements and Expanded Compliance Obligations
Resolution 520 creates new regulations regarding authorizing SPSAV operations. For that reason, institutions need to have new procedures that flow with the new digital landscape. The measure is an update to previous CMN standards and harmonizes them with crypto operations. It also prescribes certain requirements for foreign exchange brokers, securities dealers and distributors.
Additionally, current providers of crypto should seek authorization under the new framework. They will need to comply with all the regulations before the deadline mentioned. These steps are to ensure an orderly transition. As a result, there will be much more scrutiny of institutions at the approval phase. Resolution 520 goes into effect February 2, 2026.
Resolution 521 concentrates itself on activities related to the operations with foreign exchange. From now, a lot of virtual asset transactions are subject to the international capital market rules. These includes international transfer, payments and obligation settlement in digital assets. Transfers between self-custody wallets have to come with identity checks and verification of where it’s coming from. These measures enhance transaction visualisation and compliance.
For further proof, the purchase, sale, and exchange of reference to fiat currencies are now regulated. The resolution increases oversight, closes down loopholes and tops down risks of misuse of money.
New Brazil Crypto Rules Tighten FX and Cross-Border Limits
PSAVs may speculate in the foreign exchange market with an authorization. However – SPSAV institutions are constrained. They are unable to deal with operations in physical domestic or foreign currencies. Additionally, international transactions that involve virtual assets are subject to $100,000 in restrictions, provided that the counterparty involved does not have authorization. This limit is based on strengthening safety and minimizing exposure to unregulated entities.
The new rules also cover foreign credit and direct investment with virtual assets, too. These measures enhance legal certainty and avoid regulatory arbitrage. Reliable reporting is mandatory as from May 4, 2026. Therefore, institutions must go for stronger data practices.
Brazil new regulatory vision brings virtual assets closer to standards in the financial sector. The measures increase supervision, improve the number of classifications, and increase operational requirements. As a result, stability within the crypto markets of the country is strengthened.
In conclusion, these rules formalize oversight and enhance compliance. They also pave the way for market and international integration in general. Through these frameworks, Brazil is hoping to prevent illicit activities and to encourage responsible innovation.
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