Crypto Regulation in Brazil to Start in 2026 as Central Bank Sets Timeline for VASP Rules

Brazil's Central Bank has set 2026 as the implementation year for long-awaited regulations governing VIRTUAL Asset Service Providers (VASPs), marking a pivotal moment for one of Latin America's most dynamic crypto markets. The framework, approved in principle in 2022 but delayed by technical debates, aims to balance innovation with investor protection.

Final standards are expected by late 2025, giving industry participants eighteen months to adapt. "The goal is to create a framework that gives companies freedom to innovate but avoids being too bold," said Nagel Paulino of the Central Bank's regulation department, signaling a measured approach to oversight.

The MOVE responds to mounting pressure from regulators and law enforcement seeking clearer rules for Brazil's rapidly expanding digital asset sector. While no specific cryptocurrencies are named in the announcement, the regulatory clarity could benefit major assets like BTC and ETH through institutional participation.