TechFlow, November 11 — According to The Block, Brazil's central bank has issued new regulations extending existing financial industry regulatory requirements to local digital asset companies.
The new rules require virtual asset service providers to obtain authorization from the central bank before operating. Service providers are categorized into three types: virtual asset intermediaries, custodians, and brokers. The framework extends existing financial sector requirements—such as customer protection, governance, internal controls, security, anti-money laundering, and counter-terrorist financing—to cryptocurrency service providers.
The central bank also stipulates that buying and selling fiat-backed stablecoins, as well as using virtual assets for cross-border transfers or settlements, will fall under foreign exchange market regulation. If virtual asset payments or transfers involve unauthorized counterparties, transaction amounts will be capped at $100,000.
The new regulations will take effect in February 2026, giving companies nine months to comply. Institutions failing to meet the requirements by November 2026 will be required to cease operations.
