Brazil's Central Bank Issues Crypto Rulebook, Folding Virtual Assets Into FX Market

Overview

• The Banco Central published three resolutions on Nov. 10 that create licensed virtual-asset service providers (SPSVAs) and classify key crypto activities as foreign‑exchange operations, with rules effective Feb. 2, 2026.
• Providers must identify themselves to the monetary authority starting in February 2026 and have nine months to comply, with FX and capital operations involving virtual assets reportable from May 4, 2026.
• International payments or transfers in crypto and transactions involving fiat‑referenced stablecoins now fall under the FX regime and require authorization for PSAVs to execute cross‑border activity.
• The BC set a US$100,000 cap on international transfers when the counterparty is not an institution authorized to operate in the FX market, and SPSVAs are barred from handling cash in FX operations.
• Rules mandate segregation of client assets, cybersecurity and governance policies, AML/CFT controls and at least three responsible directors, while a proposed ban on withdrawals to self‑custody was replaced by wallet‑owner identification and origin/destination verification; banks and licensed currency brokers may offer intermediation and custody.