Brazil's central bank subjects crypto firms to brokerage-level regulation starting 2027

Brazil’s central bank recently placed virtual asset service providers (VASPs) under the same rules as traditional securities brokerages. 

Starting January 1, 2027, crypto platforms operating in the South American nation will be required to meet capital, risk management, and disclosure standards similar to traditional financial intermediaries. 

What are the new requirements for virtual asset service providers in Brazil? 

Brazil’s central bank reclassified crypto service providers as Type 3 institutions (Resolution No. 580/2026), placing them under the same rules as traditional securities brokerages, effective January 1, 2027. 

Once it’s in place, crypto firms will be required to maintain capital reserves, implement risk management systems, and disclose financial information on the same terms as traditional financial intermediaries. 

By June 30, 2028, all crypto firms are expected to be placed into Segment 4 (S4) of the central bank’s supervisory system, regardless of their size. S4 comes with stricter compliance rules than the simpler S5 segment, which is meant for smaller financial institutions. The central bank said crypto activity is “incompatible” with the lower-tier S5 segment.

The central bank has been building this regulatory framework since Law 14,478/2022 gave it authority over virtual assets. A 2023 presidential decree confirmed that mandate, and in November 2025, the central bank published Resolutions 519, 520, and 521, which set capital requirements between R$10.8 million and R$37.2 million (roughly $2 million to $7 million) for crypto firms. These rules also included anti-money laundering protocols and asset segregation requirements. 

In February 2026, the National Monetary Council extended bank secrecy requirements to crypto platforms, and the central bank added in May that platforms must have mandatory independent audits conducted by professionals registered with Brazil’s securities regulator (CVM). 

Will this hurt smaller crypto platforms? 

Industry executives, like Carlos Russo, CEO of Bloquo and coordinator at the Brazilian Association of Tokenization and Digital Assets (ABToken), expect that companies in the industry will begin consolidating once smaller platforms realize the struggle of absorbing compliance costs.

One unnamed industry executive reportedly said that the equivalence between crypto platforms and brokerages “doesn’t seem to make much sense in terms of ‘same risk, same regulation.’” However, the executive noted the 2027 effective date at least gives companies time to prepare. 

The industry expects the central bank to issue a supplementary rule detailing specific risk factors for the crypto segment. This topic has already gone through a public consultation process, and the central bank has taken public feedback into account on previous rules, such as allowing self-custody wallets and authorizing banks to operate in the crypto market. 

Cryptopolitan reported that Brazil processed approximately $318 billion in crypto transactions between mid-2024 and mid-2025, making it one of the largest crypto markets globally. Brazil’s central bank stated that its move is in line with international best practices for virtual asset regulation.

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