Brazil Central Bank introduces stricter rules to regulate cryptocurrencies and virtual assets

Brazil Central Bank’s new measures aim to curb fraud, money laundering, and illicit payments as crypto use surges across Latin America’s largest economy.

Brazil’s Central Bank has unveiled a new set of regulations for virtual assets and cryptocurrencies, marking a major step in tightening oversight of the fast-growing digital finance sector. The move extends existing rules on money laundering and terrorism financing to include virtual-asset service providers, creating a safer and more transparent market for users.

The country first approved a legal framework for cryptocurrencies in 2022, but its full implementation awaited detailed guidance from the central bank. Following four rounds of public consultations, the new regulations are now set to take effect in February.

Under the new framework, all purchases, sales, and exchanges of digital assets pegged to fiat currencies will be treated as foreign exchange operations. This classification also applies to international payments and transfers involving virtual assets, including those made through cards or electronic methods.

According to the bank, the rules will also strengthen customer protection, transparency, and compliance for brokers, distributors, and virtual-asset service providers.

Gilneu Vivan, the Central Bank’s Director of Regulation, said the measures aim to “reduce the scope for scams, fraud, and the use of virtual asset markets for money laundering.”

As crypto adoption continues to rise in Brazil, officials have expressed concern over the growing use of stablecoins, digital tokens pegged to currencies like the U.S. dollar, which are often used to bypass traditional, regulated payment systems.