Brazil’s Central Bank (BCB) has issued a new set of rules that brings the country’s virtual asset market into a formal regulatory framework. The rules are designed to increase legal certainty, curb illicit activity, and align the crypto ecosystem with the standards of Brazil’s National Financial System (SFN), reshaping the regulatory landscape for investors.
The initial framework is built around BCB Resolutions 519, 520, and 521, published in late 2025. Together, they regulate three core areas of the virtual asset market: market access through licensing, internal governance, and international flows.
BCB Resolution 519 introduces the licensing regime for Virtual Asset Service Providers (PSAVs) and sets the conditions under which they may operate in Brazil. Entities subject to the rule must use the PSAV designation in their corporate names, a requirement that also applies to foreign exchange brokers and securities brokers and dealers.
To prevent shell structures, the rule prohibits the use of coworking spaces as registered offices, requires an exclusive physical office in Brazil, and makes licensing subject to proof of technical capacity, sound governance, and financial viability.
Platforms that were already operating before the rule took effect are subject to a transition period. They have 270 days to file their authorization request with the Central Bank and, if they fail to do so, must cease operations within 30 days.
Once licensed, PSAVs become subject to the operating and governance requirements established by BCB Resolution 520. The rule defines key concepts such as airdrops, stablecoins, virtual wallets, and smart contracts, while requiring service providers to operate as corporations, maintain minimum paid-in capital, and undergo independent audits.
From an operational standpoint, the resolution also requires robust risk management frameworks and strict anti-money laundering and counter-terrorist financing (PLD/FT) procedures.
Its most significant requirement is Proof of Reserves, a mechanism designed to demonstrate that institutions actually hold the client assets they claim to custody. Technical requirements, as well as daily and monthly reporting obligations to the Central Bank, are governed by specific rules that provide ongoing oversight of asset custody and staking activities.
BCB Resolution 521 completes the regulatory trio by connecting the domestic framework to the global ecosystem, amending Brazil’s traditional foreign exchange rules under BCB Resolution 277/2022. The underlying logic is to bring international virtual-asset flows within the scope of the regulated foreign exchange market.
Consequently, direct foreign exchange oversight now applies to crypto-asset transfers between residents and non-residents, transactions between non-residents, and same-ownership outbound transfers, covering transactions linked to international cards and self-custody wallets.
To prevent capital flight, the regulation prohibits the purchase and sale of virtual assets with direct payment in foreign currency within domestic order books. Furthermore, it requires exchanges to eliminate anonymity in these flows, imposing strict compliance duties that mandate:
- identification of wallet holders;
- verification of the source and destination of funds;
- disclosure of the purpose of remittances
- submission of systematic reports to the regulator.
BCB Resolution 561, published in April 2026, further reduces regulatory grey areas by updating Brazil’s eFX rules for international payment services. Its core restriction prohibits the use of virtual assets or stablecoins, such as USDT or USDC, to settle payments between an eFX provider in Brazil and its foreign counterparty. As a result, these flows must go through traditional foreign exchange channels or BRL-denominated accounts held by non-residents, without affecting direct trading by end users on exchanges.
The resolution also expands eFX services to investments of up to USD 10,000, limits the service to entities authorized through the Central Bank’s Unicad system, prohibits the direct netting of balances, and gives fintechs until 31 May 2027 to obtain the required institutional license.
This regulatory progress reflects the growing maturity of Brazil’s crypto-asset market under Central Bank oversight. By bringing domestic rules closer to global standards, Brazil significantly reduces legal uncertainty, helping mitigate risk and create a more predictable environment for foreign investment.
Glossary:
Banco Central do Brasil (BCB): Brazil’s central bank and primary financial regulator, responsible for monetary policy, foreign exchange regulation, and oversight of the financial system.
BCB Resolutions 519, 520, and 521: A coordinated set of regulations issued in late 2025 establishing Brazil’s regulatory framework for virtual asset activities, covering licensing, governance, and international transactions.
National Financial System (SFN): Brazil’s framework of institutions, regulatory bodies, and rules governing financial, banking, capital markets, and payment activities.
Shell companies: Entities with little or no substantive business activity, often used to conceal ownership, transactions, or financial flows.
Securities brokers and dealers (CTVMs and DTVMs): Financial institutions authorized to intermediate transactions involving securities and other financial instruments in Brazil.
Stablecoins: Virtual assets designed to maintain a stable value by reference to another asset, currency, or basket of assets.
Airdrops: Distributions of digital tokens or virtual assets directly to users, typically without consideration.
Smart contracts: Self-executing digital agreements that automatically perform predefined actions when specified conditions are met.
Virtual wallets: Digital tools used to store, receive, and transfer virtual assets.
Anti-money laundering and counter-terrorist financing (PLD/FT): Measures designed to prevent the use of financial systems for money laundering, terrorist financing, and related illicit activities.
Paid-in capital: Capital effectively contributed by shareholders and made available to the company.
Asset custody: The safeguarding and administration of assets held on behalf of clients.
Proof of Reserves: A verification mechanism designed to demonstrate that a service provider actually holds the assets it claims to safeguard on behalf of clients.
BCB Resolution 277/2022: The Central Bank regulation governing Brazil’s foreign exchange market and related cross-border transactions.
Staking: The process of committing virtual assets to support blockchain network operations in exchange for potential rewards.
Residents and non-residents: Regulatory classifications used in foreign exchange rules to distinguish persons or entities established in Brazil from those located abroad.
Regulated foreign exchange market: The system of foreign exchange transactions conducted under the supervision and rules established by the Central Bank.
Domestic order book: The platform or mechanism through which buy and sell orders are matched within a regulated trading environment.
Self-custody wallets: Virtual asset wallets controlled directly by users without the involvement of a third-party custodian.
Remittances: Transfers of funds between jurisdictions, particularly in cross-border payment and foreign exchange transactions.
Wallet holders: Individuals or entities that own or control virtual asset wallets.
eFX: A regulated international payment service that enables certain cross-border transactions outside traditional foreign exchange contracting models.
BCB Resolution 561: A regulation issued in April 2026 updating Brazil’s eFX framework and establishing new restrictions on the use of virtual assets in international payment settlements.
USDC (USD Coin): A stablecoin designed to maintain parity with the U.S. dollar and backed by reserve assets.
USDT (Tether): A stablecoin designed to track the value of the U.S. dollar.
Unicad system: The Central Bank’s registration system used to manage information on authorized institutions and regulated entities.
BRL-denominated accounts held by non-residents: Accounts maintained in Brazilian reais by individuals or entities classified as non-residents under Brazilian foreign exchange regulations.
