Brazil's Central Bank issued long-awaited regulatory rules for virtual asset (including cryptocurrency) transactions on Monday, November 10. The new framework extends existing anti-money laundering (AML) and counter-terrorism financing (CFT) regulations to virtual asset service providers.
As Latin America's largest economy, Brazil passed a cryptocurrency legal framework in 2022, but its implementation required supplementary regulations from the central bank. The bank had previously conducted four public consultations on the matter.
The move comes amid surging cryptocurrency adoption. Central Bank Governor Gabriel Galípolo expressed particular concern about the growing use of stablecoins pegged to real-world assets like the U.S. dollar, which are often linked to illicit activities.
"The new rules will reduce opportunities for fraud and limit the use of virtual assets for money laundering," said Gilneu Vivan, head of the central bank's regulatory department, during a press briefing.
The regulations, set to take effect in February 2026, will cover foreign exchange and securities brokers, distributors, and licensing processes for virtual asset service providers.
Policymakers noted that stablecoins—with their lower volatility compared to cryptocurrencies like Bitcoin—are primarily used for payments rather than investments. Many users employ them to bypass traditional payment systems with stricter oversight and higher tax burdens.
Under the new rules, any transaction involving virtual assets pegged to fiat currencies will be classified as foreign exchange operations. This classification also applies to international payments or transfers using virtual assets, including those settled via cards or electronic payment methods.
The central bank stated that the regulations will extend existing customer protection, transparency, AML, and CFT requirements to virtual asset service providers. Additional provisions include governance and security requirements, internal control mechanisms, reporting obligations, and other compliance measures.