Brazil Tightens Oversight of Crypto Firms With New Central Bank Rules

Brazil’s central bank has introduced a sweeping new regulatory framework for digital asset service providers, extending anti-money laundering (AML) and counter-terrorism financing rules to the country’s growing crypto sector.

The move marks one of the most significant steps yet in Brazil’s push to integrate virtual assets into its financial system while curbing illicit activity.

Brazil to Require Crypto Firms to Obtain Central Bank Approval by November 2026

The rules, announced Monday, will take effect in February 2026 and will require virtual asset service providers (VASPs), including intermediaries, custodians, and brokers, to obtain authorization from the central bank before operating.

The framework mandates strict compliance measures on governance, transparency, internal controls, cybersecurity, and risk management, bringing crypto firms under the same supervisory standards as traditional financial institutions.

Companies will have until November 2026 to meet the requirements or cease operations.

Under the new regulations, any purchase, sale, or exchange of fiat-pegged stablecoins will be treated as a foreign exchange transaction, as will the use of crypto for international transfers or settlements.

If such transactions involve unauthorized counterparties, they will be capped at $100,000, the bank said.

Banco Central regulamenta o uso de ativos virtuais e o funcionamento e a autorização das instituições que atuam nesse mercadohttps://t.co/USHJNe602H

— Banco Central BR (@BancoCentralBR) November 10, 2025

The rules are part of Brazil’s broader effort to tighten oversight following a surge in stablecoin usage, which authorities say is increasingly being used for payments and cross-border transfers rather than investment.

“New rules will reduce the scope for scams, fraud, and the use of virtual asset markets for money laundering,” said Gilneu Vivan, the bank’s director of regulation, at a press briefing.

The framework builds on Brazil’s 2022 crypto law, which established a legal basis for virtual assets but required additional central bank regulations to take effect.

With the new measures, Brazil aims to cement its status as Latin America’s regulatory leader in digital finance.

According to Chainalysis, Brazil is now the fifth-largest crypto market globally, handling nearly $319 billion in crypto transactions between mid-2024 and mid-2025, roughly a third of all Latin American activity.

The central bank expects the updated rules to make the country’s fast-growing digital economy more secure, transparent, and aligned with international financial standards.

Brazil Debates $19B Bitcoin Reserve Plan to Hedge Against Dollar

As reported, Brazil’s Congress is debating the creation of a $19 billion Bitcoin strategic reserve, dubbed RESBit, aimed at diversifying the country’s financial holdings and reducing reliance on the US dollar.

The proposal, part of Bill 4501/24, was discussed during a public hearing on August 20 led by the Economic Development Commission in Brasília.

Lawmakers, economists, and crypto experts argued that Bitcoin could serve as a digital commodity similar to gold, providing a hedge against inflation and geopolitical risks.

If approved, Brazil would become one of the first major economies to formally hold Bitcoin as part of its national reserves, joining efforts already underway in El Salvador, the US, and parts of Asia.

The initiative would place the Central Bank of Brazil and the Finance Ministry in charge of custody and oversight, requiring biannual reports on performance and risk exposure to ensure transparency.

However, the plan faces significant hurdles. It must pass through four congressional committees, including Economic Development, Science and Technology, Finance, and Justice, before reaching the Senate.