Brazil’s Central Bank Finalizes Crypto Rulebook as Tax Authority Moves to Tighten Reporting

Overview

• The Central Bank issued Resolutions 519, 520 and 521 creating licensed Virtual Asset Service Provider companies (SPSVAs) and bringing specific crypto activities into the regulated framework.
• Licensing and operational rules take effect on 2 February 2026, with existing firms required to seek authorization and transition under a nine‑month compliance window.
• Providers must segregate client assets, meet governance and cybersecurity standards, hold minimum capital of roughly R$10.8 million to R$37.2 million, and report suspicious activity to Coaf.
• International transfers using virtual assets enter the foreign‑exchange regime, with an equivalent US$100,000 cap when the counterparty is not authorized, and mandatory FX‑related reporting to the Central Bank starts on 4 May 2026.
• Stablecoins face tighter treatment with a ban on algorithmic designs, and crypto debit cards for Brazilian clients require local authorization, while tax questions such as possible IOF application remain under Receita Federal review.