Brazil Tightens Crypto Rules with New Capital Requirements for Virtual Asset Service Providers

Brazil is strengthening its crypto regulations with new capital rules for virtual asset service providers. The Central Bank approved the prudential rules, which will take effect on January 1, 2027.

The framework requires crypto companies to hold minimum capital reserves and create formal risk management policies. Firms must also disclose financial and operational information on a periodic basis.

The new standards are intended to support the financial system and ensure customer and market security. The Central Bank considers similar risks subject to similar regulation, categorizing virtual asset service providers as Type 3 institutions.

By June 30, 2028, all virtual asset service providers must become Segment 4 institutions, marking a transition to banking supervision. This will allow companies more time to satisfy prudential requirements.