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.
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.
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.
“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.
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.
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.
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.
