The Central Bank of Brazil has approved three key resolutions — No. 519, No. 520, and No. 521, that define how companies working with virtual assets will operate and be authorized in the country. The measures also regulate the use of cryptocurrencies in foreign exchange and international capital transactions. The decisions followed public consultations with members of the crypto industry, banking sector, law firms, and international organizations. All three resolutions will take effect on February 2, 2026. Resolution No. 520 establishes the rules for Virtual Asset Service Providers (VASPs) — companies officially permitted to offer crypto-related services. These will be divided into intermediaries, custodians, and crypto brokers, and can operate only with Central Bank authorization. The regulation covers areas such as customer protection, anti–money laundering (AML), counter–terrorism financing, corporate governance, information security, and data transparency. Meanwhile, Resolution No. 519 defines the authorization process for both new and existing companies in the crypto sector. It also updates rules for segments previously overseen by the National Monetary Policy Council, including foreign exchange brokers and securities distributors. The Central Bank emphasized that the new framework will standardize deadlines, applications, and compliance obligations for all companies planning to operate legally in Brazil’s crypto market. Crypto Transactions Now Treated as Foreign Exchange Operations For the first time, Resolution No. 521 equates certain cryptocurrency operations with foreign exchange and international capital transactions. From now on, the following actions fall under the new category: international payments or transfers using crypto assets; transactions settling international obligations, including card payments; transfers between independent wallets (if the owner is identified); purchase, sale, or exchange of crypto assets linked to fiat currency. For companies not authorized to operate in the foreign exchange market, international crypto transactions are capped at $100,000. Licensed operators must follow standard foreign exchange protocols. The new rules also cover the use of crypto assets in foreign loans and direct investments, aiming to boost efficiency, prevent regulatory arbitrage, and improve transparency in national statistics. Starting May 4, 2026, all transactions involving crypto assets in foreign exchange and international capital markets must be reported to the Central Bank. Legislative Push and Security Challenges These updates come alongside Bill PL 957/2025, which proposes allowing wages to be paid in cryptocurrency, provided at least 50% of the payment is made in fiat currency. In July 2025, the Central Bank of Brazil suffered a major cyberattack, with about $140 million stolen following a breach at C&M Software, one of its key providers. Part of the funds was allegedly laundered through Bitcoin, Ethereum, and USDT, underscoring the urgency of stronger crypto oversight.
