Brazil’s central bank has introduced new regulations that bring crypto service providers under the same rules as traditional financial institutions. These updated laws mean that all virtual asset service providers—including intermediaries, custodians, and brokers—must now obtain official authorization from the Central Bank of Brazil to operate legally.

The regulations require crypto firms to implement strict standards for customer protection, corporate governance, risk management, and internal controls. Companies must also set up robust cybersecurity systems, establish compliance procedures, and create incident response plans to safeguard users and the financial system.

The new rules also impact how cross-border crypto transactions and payments involving fiat-backed stablecoins are managed, making them subject to Brazil’s existing foreign exchange laws. Additionally, any crypto payment or transfer involving an unapproved counterparty is now capped at a maximum of $100,000 per transaction.

These measures are designed to protect consumers, reduce the risk of fraud and money laundering, and bring Brazil’s digital finance sector in line with international best practices. The move signals the government’s commitment to fostering innovation while ensuring strong oversight in the rapidly evolving crypto industry.