Brazil Rolls Out New Regulatory Framework for Virtual Asset Companies; What Changed?

Key Takeaways

The Central Bank of Brazil has unveiled Resolutions 519, 520, and 521, introducing a full regulatory framework for companies operating in the virtual asset market.
Crypto firms must now obtain formal approval from the Central Bank, with existing providers required to comply with the new standards by February 2026.
The new framework creates a dedicated entity type, the SPSAV, which can act as a broker, custodian, or intermediary and must follow the same transparency, governance, and anti–money laundering rules as other financial institutions.
From May 2026, institutions will be required to report data on foreign exchange and capital operations involving virtual assets, as the Central Bank moves to improve oversight and integrate crypto into Brazil’s financial system.

The Central Bank of Brazil has introduced a new regulatory framework for companies that operate in the virtual asset market, marking an important step toward integrating cryptocurrencies into the country’s financial system.

The rules, published under Resolutions 519, 520 and 521, define how firms can offer digital asset services, set out requirements for obtaining authorization, and determine which crypto-related activities fall under foreign exchange and international capital regulations.

Central Bank Lays Out Licensing Process for Virtual Asset Providers

Under the new framework, companies that wish to provide virtual asset services will need formal approval from the Central Bank.

The new authorization process is outlined in Resolution 519, which also revises oversight procedures for brokers and distributors and gives existing crypto firms until February 2026 to meet the new standards.

Resolution 520 focuses on how these service providers will operate. It creates a new type of entity called Sociedade Prestadora de Serviços de Ativos Virtuais (SPSAV), which can act as a broker, custodian, or intermediary of digital assets.

These companies will be subject to the same rules that apply to other regulated financial institutions, such as customer protection, transparency, strong governance, cybersecurity, and anti–money laundering measures.

Integrating Crypto Into The Foreign Exchange System

Resolution 521 extends regulation to certain crypto operations that cross borders or involve foreign currency.

Under the new framework, activities such as international payments with digital assets, wallet-to-wallet transfers, and trades tied to fiat currencies will be considered foreign exchange transactions.

To strengthen oversight, service providers must verify the identity of wallet holders and document where virtual assets come from and where they are sent.

Additionally, transfers involving institutions not licensed to operate in Brazil’s foreign exchange market will be limited to the equivalent of 100,000 US dollars.

Transition Period and Next Steps

All three resolutions will take effect on February 2, 2026, requiring institutions to begin reporting data on foreign exchange and capital operations involving virtual assets to the Central Bank from May 2026 onward.

According to the Central Bank, the new framework is designed to give legal certainty to crypto transactions, close regulatory gaps, and ensure Brazil’s financial data reflects the growing role of digital assets in international trade and payments.

From Drex to Derivatives: Brazil Tightens Grip on the Digital Economy

Brazil has been steadily positioning itself as one of the most proactive countries in Latin America when it comes to regulating and integrating digital assets.

The government and financial regulators are collaborating to build a framework that combines innovation with oversight, ensuring that crypto, blockchain, and tokenized assets evolve within the formal financial system rather than outside it.

Brazil’s Central Bank has identified stablecoins and tokenization as the next priorities in its digital finance agenda.

Governor Roberto Campos Neto said the bank will introduce clear rules for both, building on the groundwork laid by Brazil’s recent crypto framework and supporting the shift toward tokenized finance within the formal banking system.

At the same time, the Central Bank’s digital currency project, Drex, has entered an advanced testing phase.

The second stage of the pilot, which began in late 2024 and continued through 2025, is exploring how Drex can be used for tokenized foreign exchange, delivery-versus-payment transactions, and programmable money.

Regulators and participating institutions have noted that privacy remains the central challenge, as the bank seeks to strike a balance between user confidentiality and compliance with financial oversight standards.

Parallel to these regulatory initiatives, Brazil’s main stock exchange, B3, is rapidly expanding its crypto offerings in response to growing investor demand.

In June 2025, the exchange launched futures contracts for Ethereum (ETH) and Solana (SOL) following approval from the Brazilian Securities and Exchange Commission (CVM).

Together, these developments show how Brazil is shaping a comprehensive ecosystem that combines strong regulation, technological innovation, and expanding market access.