Central Bank of Brazil Releases Crypto Regulatory Framework, VASP Licensing with up to $7 Million Capital Threshold

Techub News, according to CoinDesk, the Central Bank of Brazil has released regulatory details for virtual asset service providers (VASPs). Companies must obtain authorization from the central bank and meet capital requirements, with a minimum of 10.8 million reais, approximately $2 million. For certain business types, the requirement increases to 37.2 million reais, approximately $7 million. Overseas platforms serving Brazilian clients must establish a local entity to operate. The rules take effect from February 2026, with authorization and compliance required by November 2026 at the latest during the transition period. The new regulations include the buying and selling of fiat-pegged stablecoins, as well as the use of virtual assets for cross-border payments or settlements, under foreign exchange management. The single transaction limit for cross-border transfers with unauthorized counterparties is $100,000. Additionally, requirements for consumer protection, internal governance, and anti-money laundering/combating the financing of terrorism (AML/CFT) are fully applied to crypto businesses, and foreign transaction data must be reported as required.