BrazilRegulation
|4 min ReadBrazil Tightens Crypto Rules And Demands Bigger Capital Buffers
Lucca Menezes
Senior Analyst
Published
Jan 16, 2026
Brazil’s central bank has finally drawn a clear line around crypto. It is rolling out a full licensing regime, setting steep capital bars and pulling stablecoins, self-custody and cross-border flows into the same world as foreign exchange and securities. For a market as big and lively as Brazil, this is a historic shift. Everybody in crypto who wants a piece of that market will now have to play by bank-style rules.
The central bank says the goal is simple but tough. It wants innovation and security in the same room. Regulation chief Gilneu Vivan put it plainly at a press event, according to local outlet Portal do Bitcoin. The crypto market runs on heavy technology and has serious anti-money-laundering duties, so regulators need guarantees that firms can do the job well. That is the heart of this new framework.
Licensing Regime Brings VASPs Under The Central Bank
The new framework consists of three resolutions that tell crypto businesses how they must operate, how much capital they must hold and how international crypto flows will be treated in law. The rules kick in after a short transition period, and existing firms then have nine months to get in line.
At the center is a new type of legal entity called Sociedades Prestadoras de Serviços de Ativos Virtuais, or SPSAVs. In global language, these are Virtual Asset Service Providers. Every SPSAV will need a license from the central bank. The regime splits them into three bands based on what they do: intermediaries, custodians and brokerages.
Licensing is not just a stamp on the wall. To keep operating, firms will have to prove their capital levels, cybersecurity controls, customer due diligence systems and risk management. Those that fail to meet the deadline, or fail to meet the standards, will be shut out of the Brazilian market.
Foreign firms do not get a free pass. Any overseas company serving Brazilian clients will have to set up a local entity and move its Brazilian operations under that structure. Those that refuse can be barred from the country altogether. For global exchanges and brokers, this is a clear message. If you want Brazil’s users, you plant a flag in Brazil and accept Brazilian supervision.
Capital Requirements Jolt Smaller Crypto Firms
The biggest surprise is the size of the capital bar. The central bank says crypto companies will need a minimum of 10.8 million reais, roughly 2 million dollars, in capital just to play. For some types of businesses, that floor jumps to 37.2 million reais. That is far above the 1 million to 3 million reais range floated during the earlier public consultation.
Bernardo Srur, who heads the Brazilian Association of Cryptoeconomy (ABCripto), called the overall framework positive and necessary. At the same time, he criticized the high capital levels and the short compliance window. In his view, the package could deter new entrants and limit competition, even if it brings more safety.
From the central bank’s perspective, the logic is clear. Crypto firms are being asked to hold capital more like financial institutions, not lightweight tech startups. The message is that if you want to custody assets, handle client money or intermediate cross-border flows, you must have real skin in the game. That calms regulators and traditional banks. It will squeeze smaller players and undercapitalized outfits.
FX Controls Reach Stablecoins And Self-Custody
The framework also pulls many crypto flows into Brazil’s foreign exchange and cross-border capital controls. This covers international payments in cryptocurrencies, stablecoin transactions, transfers to and from self-custody wallets and crypto-to-fiat conversions.
VASPs and other firms already authorized in Brazil’s FX markets can process these transactions, but the rules are tight. Each transaction faces a cap of 100,000 dollars. On top of that, firms will have to report these crypto FX deals to the central bank every month. Reports must include client details, asset types, amounts in local currency and the links between counterparties.
There are further limits. VASPs are barred from handling physical cash, whether local or foreign, and from using foreign banknotes to buy crypto. In other words, the regulator wants these flows inside the banking system, not in suitcases or back rooms.
Officials say the aim is to reduce regulatory arbitrage and bring transparency to crypto’s role in the balance of payments and economic data. When stablecoins and cross-border flows move in the shadows, it is hard to measure risk. With these rules, Brazil is telling the market that crypto can grow, but it must grow in the light, on the record and under the same kind of scrutiny that already applies to traditional FX and capital markets.
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