Brazil Tightens Oversight of Crypto Firms With New Central Bank Rules

Brazil's central bank has unveiled a comprehensive regulatory framework for digital asset service providers, marking a pivotal shift in the country's approach to cryptocurrency oversight. The new rules, set to take effect in February 2026, will require all virtual asset service providers—including exchanges, custodians, and brokers—to obtain central bank authorization by November 2026 or face operational shutdowns.

The regulations classify stablecoin transactions and cross-border crypto transfers as foreign exchange operations, subjecting them to enhanced scrutiny. With Brazil's crypto market valued at $319 billion, the measures aim to inject greater transparency and security into the sector while aligning it with traditional financial institution standards.

Governance, risk management, and cybersecurity protocols will now mirror those applied to conventional banks. This MOVE signals Brazil's ambition to integrate digital assets into its financial mainstream while combating money laundering and terrorist financing risks inherent in the rapidly growing sector.