Brazil extends financial sector regulations to crypto service providers

Brazil’s central bank released new rules for local digital asset firms on Monday, tightening requirements for service providers to strengthen efforts against illicit activities.

According to the central bank’s announcement, the new rules mandate that virtual asset service providers obtain central bank authorization to operate. Service providers are classified in three categories — virtual asset intermediaries, custodians and brokers.

The new framework extends existing requirements for the financial sector — such as customer protection, governance, internal controls, security, and the prevention of money laundering and terrorist financing — to crypto service providers. 

This includes requirements for the companies to establish compliance and risk management systems, cybersecurity policies, and incident response protocols. Providers that implement sufficient measures in compliance with the rules will be able to obtain authorization to operate.

The central bank also established that the purchase or sale of fiat-pegged stablecoins, as well as the use of virtual assets for international transfers or settlements, will fall under the scope of foreign exchange market regulation.

If a virtual asset payment or transfer involves an unauthorized counterparty, the transaction will be capped at $100,000, according to the resolution.

Gilnew Vivan, the central bank’s director of regulation, said on Monday that these new rules are designed to help prevent scams, fraud and money laundering using cryptocurrencies.

These new resolutions will take effect in February 2026. According to CNN Brazil, companies will be given nine months to fully adapt to the requirements. Institutions that fail to comply with the new rules by November 2026 will be required to cease operations.

Leading Latin America

Brazil is home to the dominant crypto market in Latin America. As of 2025, it ranks fifth worldwide in Chainalysis’ Global Crypto Adoption Index, up from 10th in 2024. 

Between July 2024 and June 2025, Brazil saw a total of $318.8 billion in crypto value received, which is nearly one-third of all Latin American crypto activity during the period, the research firm wrote.

In February, Gabriel Galipolo, Brazil’s central bank chief, said there has been a continued surge in domestic crypto usage over the past three years, with around 90% of the flow linked to stablecoins, according to a report from Reuters.

“While crypto policy and regulation in LATAM tend to lag behind adoption, Brazil is one of several countries that have already implemented meaningful crypto regulations,” Chainalysis said. “As we move toward a more regulated environment by the end of 2025, we expect Brazil to maintain its central position, building on strong institutional interest.”

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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