Brazil Sets Sights on Crypto Regulation to Build Confidence and Strengthen Regional Leadership
- Brazil's central bank introduced Latin America's strictest crypto regulations, requiring VASPs to obtain authorization and comply with banking-level oversight by November 2026. - New rules mandate $2M+ capital requirements, classify stablecoin transactions as forex operations, and cap unapproved crypto transfers at $100,000 per transaction. - The framework aims to combat fraud and illicit finance by extending AML protocols to stablecoins, which account for 90% of Brazil's crypto activity, while enhancing
Brazil Rolls Out Sweeping Crypto Regulations to Combat Market Abuse
The Central Bank of Brazil has introduced one of the region’s toughest sets of rules for the cryptocurrency industry, requiring digital asset companies to adhere to oversight standards similar to those of traditional banks and setting strict transaction limits for unauthorized activities. Starting February 2026, all virtual asset service providers (VASPs)—such as exchanges, custodians, and brokers—will need to secure official approval from the central bank to operate, with a compliance grace period extending to November 2026,
The regulations, detailed in Resolutions 519, 520, and 521, apply existing financial sector standards to crypto businesses, demanding strong governance, cybersecurity measures, and anti-money laundering (AML) controls,
Stablecoins, which represent close to 90% of Brazil’s crypto transactions, are a central focus of the new policies. By classifying stablecoin payments as foreign exchange, the central bank is closing significant loopholes in AML and transparency requirements,
The overhaul also sets minimum capital thresholds, requiring companies to maintain at least 10.8 million reais (about $2 million) in capital, depending on their business model,
Meanwhile, lawmakers in Brazil are considering a $19 billion
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