Brazil Tightens Crypto Firm Rules with Stricter Capital Requirements

Brazil's Central Bank has introduced new prudential rules for virtual asset service providers, requiring them to maintain minimum capital reserves and implement formal risk management systems.

The rules, set to take effect on January 1, 2027, are designed to strengthen the financial system and reduce risks faced by customers and the broader market.

Crypto exchanges, custodians, and transfer service providers will now fall under the Type 3 institutional classification, subject to supervisory requirements already applied to securities brokers, distributors, and foreign exchange brokerage firms.