Brazil Tightens Crypto Oversight: Central Bank to Regulate Digital Asset Firms by 2026

Brazil's Central Bank is escalating its regulatory grip on the cryptocurrency sector, unveiling a framework that will subject all digital asset firms to banking-level supervision by 2026. The move follows a surge in crypto activity, with Brazil processing $319 billion in transactions between mid-2024 and mid-2025—ranking as the world’s fifth-largest market.

The regulations mandate that exchanges, brokers, and custodians seek operational authorization starting February 2026, with non-compliant entities forced to exit by November. Firms must adopt stringent controls, including cybersecurity protocols and consumer safeguards, aligning with traditional financial institution standards. Central Bank officials frame the policy as a bid to curb fraud rather than stifle innovation, noting that the industry has "outpaced its rulebook."

Market participants welcome the clarity after a year marred by scams. "This brings legitimacy," remarked one exchange executive, speaking anonymously. The oversight shift mirrors global trends as jurisdictions grapple with balancing crypto’s disruptive potential against systemic risks.