The Central Bank of Brazil issued three landmark resolutions (BCB Nos. 519, 520 and 521) on 10 November 2025, establishing a comprehensive regulatory framework for virtual asset services. The measures define and regulate virtual asset service providers (VASPs), set authorisation and operational requirements, and integrate certain virtual asset activities into Brazil’s existing foreign exchange regime. The overall goal of the resolutions is to align Brazil’s rules with global standards, strengthen security and efficiency within the country’s financial system, and ensure that affected companies are subject to the authorisation, supervision and monitoring processes of the central bank. Collectively, the resolutions complete the framework envisaged under Law No. 14,478/2022 and position Brazil among the most advanced jurisdictions in virtual asset regulation. The resolutions take effect on 2 February 2026.
Virtual assets—such as cryptocurrencies—are digital representations of value that exist solely in digital form. They can be transferred, traded or used in electronic transactions and may function as a medium of exchange, a store of value or a means to access services. The rapid growth of cryptocurrency and other digital asset transactions in recent years has prompted governments around the world to explore regulatory frameworks and issue clearer guidance.
Resolution BCB No. 519/2025 establishes authorisation and governance requirements for four types of entities:
Resolution No. 520/2025—the core of the framework—governs the provision of virtual asset services, the incorporation and operation of VASPs, and the prudential standards applicable to the sector. It consolidates rules that reposition the crypto sector within the prudential and regulatory standards of the national financial system. Key requirements include:
The third resolution, Resolution BCB No. 521, complements the regulatory framework by bringing several virtual asset operations under Brazil’s foreign exchange and international capital market regime (and amending three prior resolutions). The key changes include the following:
With these three resolutions, Brazil transitions from a fragmented approach to a robust, prudential and FATF‑aligned regulatory framework. The new rules enhance legal certainty, strengthen investor protection and reinforce market integrity, further positioning Brazil as a global leader in virtual asset regulation.
With the 2 February effective date rapidly approaching, companies should begin preparing for the new authorisation, governance and compliance requirements. Additionally, starting in May 2026, it will be necessary to provide information to the central bank about foreign exchange market transactions and foreign capital operations in Brazil.
Edilson Muniz
BDO in Brazil
Virtual assets—such as cryptocurrencies—are digital representations of value that exist solely in digital form. They can be transferred, traded or used in electronic transactions and may function as a medium of exchange, a store of value or a means to access services. The rapid growth of cryptocurrency and other digital asset transactions in recent years has prompted governments around the world to explore regulatory frameworks and issue clearer guidance.
Resolution BCB No. 519/2025
Resolution BCB No. 519/2025 establishes authorisation and governance requirements for four types of entities:
- Foreign exchange brokers;
- Securities brokers;
- Securities distributors; and
- Newly regulated VASPs (covering crypto exchanges, custodians and intermediaries).
Resolution BCB No. 520/2025
Resolution No. 520/2025—the core of the framework—governs the provision of virtual asset services, the incorporation and operation of VASPs, and the prudential standards applicable to the sector. It consolidates rules that reposition the crypto sector within the prudential and regulatory standards of the national financial system. Key requirements include:
- Mandatory asset segregation: Client funds must be fully segregated from VASP funds, including both virtual assets and fiat currency.
- Independent audits and proof of reserves: VASPs must publish reports, provide reserve attestations, implement risk policies and ensure full traceability of operations.
- Operational classifications: VASPs must operate according to their designation as intermediaries, custodians or brokers and may not accumulate incompatible functions.
- Authorisation requirements: Authorisation requirements are imposed on new entrants and companies already operating in the market. Existing operators (both domestic and foreign) must apply to the central bank between 2 February and 29 October 2026 and demonstrate robust internal controls, cybersecurity protocols and regulatory compliance. Foreign entities operating in Brazil that are unable to demonstrate the existence of significant Brazilian customers as of 2 February 2026 must request authorisation to operate in Brazil, a process that can take up to two years.
Resolution BCB No. 521
The third resolution, Resolution BCB No. 521, complements the regulatory framework by bringing several virtual asset operations under Brazil’s foreign exchange and international capital market regime (and amending three prior resolutions). The key changes include the following:
- International payments and transfers: Transactions involving currency conversion, international remittances, stablecoin use and cross-border transfers must comply with the same foreign exchange rules that apply to traditional financial transactions.
- Traceability and identification: Exchanges must report wallet-holder identification, transaction details, assets involved and the origin/destination of the transaction to the central bank.
- Cross-border transaction limits: Virtual asset services may be offered in the foreign exchange market up to the equivalent of USD 500,000 for banks and authorised financial institutions and USD 100,000 for VASPs.
BDO Takeaway
With these three resolutions, Brazil transitions from a fragmented approach to a robust, prudential and FATF‑aligned regulatory framework. The new rules enhance legal certainty, strengthen investor protection and reinforce market integrity, further positioning Brazil as a global leader in virtual asset regulation.With the 2 February effective date rapidly approaching, companies should begin preparing for the new authorisation, governance and compliance requirements. Additionally, starting in May 2026, it will be necessary to provide information to the central bank about foreign exchange market transactions and foreign capital operations in Brazil.
Edilson Muniz
BDO in Brazil