Major changes in Brazil's crypto regulation: What do they mean for the industry?

Latin America Takes the Lead in Digital Asset Adoption: Brazil Now Enforces Strict Supervision on Crypto Service Providers
Central bank regulations, starting from February 2026, will require virtual asset providers to obtain official approval before launching their (VASP) digital gateways. This step is taken to prevent money laundering, fraud, and other illegal activities.

New Responsibilities for Crypto Companies

The new regulations will bring all VASP’ers—namely currency custodians, brokers, and other managers of Bitcoin, stablecoins, and other digital assets—up to strict standards similar to traditional financial institutions. These requirements include:

• Robust customer verification protocols
• Updating internal control and risk management systems
• Special attention to cybersecurity and data protection
• Developing quick response mechanisms for incidents

Compliance specialists will need to implement these standards through thorough systematic work. If not implemented properly or in a timely manner—by the end of November 2026—the Brazilian regulator will have the authority to suspend activities.

Additionally, suspicious transaction monitoring will be enforced for amounts exceeding $100,000—crypto transfers above this threshold will be subject to increased scrutiny.

Brazil: The Digital Asset Hub of Latin America

According to Chainalysis’ Global Crypto Adoption Index, Brazil ranks fifth worldwide, which is a notable achievement. A year ago, the country was in tenth place, but now it has become a direct leader in Latin America.

Between mid-2024 and mid-2025, Brazil processed $318.8 billion in crypto transactions. This figure accounts for approximately one-third of Latin America’s total digital transaction volume. According to Central Bank head Gabriel Galipolo, 90% of crypto trades in Brazil are conducted via stablecoins—indicating the widespread use of digital currencies in everyday transactions.

Balancing Act: Regulation Meets Innovation

Industry experts view Brazil’s position as a model in the region. While many Latin American countries lag behind in the crypto sector, Brazil is moving forward with a natural and well-considered approach.

As the global financial environment becomes increasingly strict, Brazil is maintaining a strong investment enthusiasm alongside its developing digital economy culture.

These recent changes mark a significant milestone in the history of crypto legalization, expected to strengthen the legal and detailed framework for digital assets.

Author: András Mészáros
Cryptocurrency and Web3 scholar, Founder of the Kriptoworld platform

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András provides in-depth analysis articles on DeFi, tokenization, altcoins, and crypto regulations transforming the digital economy over the years.