Brazil expands the regulatory scope of the financial sector to cryptocurrency service providers

According to The Block, the Central Bank of Brazil has released new regulations for local digital asset companies, further tightening the requirements for service providers to combat illegal activities.

Under the new regulations, virtual asset service providers must obtain authorization from the Central Bank of Brazil to operate, and they are classified into three categories: virtual asset intermediaries, custodians, and brokers. The new regulations extend existing financial industry requirements for customer protection, internal governance, and anti-money laundering to cryptocurrency service providers, requiring them to establish compliance and risk management systems, among others. Service providers that meet the requirements and take adequate measures can obtain operational authorization.

Additionally, trading of stablecoins pegged to fiat currencies, as well as international transfers or settlements using virtual assets, will be subject to foreign exchange market regulation; if unauthorized counterparties are involved, the transaction amount limit is set at $100,000. The new regulations will take effect in February 2026, and companies will have nine months to adapt; those that do not comply by November 2026 will be required to cease operations.