Brazil Crypto Firms Face October 30 Licensing Deadline

Brazil's cryptocurrency market is entering a new phase of formal regulation as the country's central bank moves to bring virtual asset service providers under direct oversight. The framework, which took effect on February 2, 2026, requires all firms offering crypto trading, custody, or related services to obtain a license by October 30, 2026, or face disconnection from the national banking system.

The rules are established through Central Bank Resolutions 519, 520, and 521, which were published in November 2025. They create a licensing regime for virtual asset service providers, or VASPs, and impose strict governance, cybersecurity, and anti-money laundering standards. A key provision treats purchases, sales, and certain crossborder transfers of stablecoins as foreign exchange operations, subjecting them to transaction limits and reporting requirements. For pure VASPs, the per-transaction limit is set at US$100,000, while authorized financial institutions face a cap of US$500,000.

The October 30 deadline is a critical juncture. After that date, licensed banks and payment institutions will be prohibited from providing services to any unlicensed crypto operator. This effectively...