Brazil Central Bank Unveils Crypto Regulations

Brazil's Central Bank has unveiled a comprehensive regulatory framework for the cryptocurrency sector, classifying transactions involving stablecoins and certain self-custody wallet transfers as foreign exchange operations to combat scams, money laundering, and other illicit activities. The guidelines, outlined in Resolutions 519, 520, and 521 and published on November 10, will take effect on February 2, 2026, with additional reporting requirements for cross-border and capital market activities starting May 4, 2026.

The new rules establish a licensing system for virtual asset service providers, known as Sociedades Prestadoras de Serviços de Ativos Virtuais, or SPSAVs. These entities, which include brokers, custodians, and intermediaries, must obtain authorization from the Central Bank before operating. The framework imposes banking-level standards on governance, internal controls, cybersecurity, customer protection, and anti-money laundering measures, aligning cryptocurrency operations with those of traditional financial institutions. Firms have until November 2026 to achieve full compliance or halt activities.

A key provision in Resolution 521 redefines stablecoin transactions,...