The Central Bank of Brazil is advancing a comprehensive regulatory framework specifically designed for institutional Virtual Asset Service Providers (VASPs), with a phased implementation timeline extending through 2027. The initiative, confirmed by Antônio Marcos Guimarães, deputy head of the bank's Regulation Department, focuses on Business-to-Business (B2B) crypto infrastructure firms rather than retail exchanges.
The new framework targets companies providing core infrastructure services, including custody, settlement, payment networks, and blockchain tools. Notable firms expected to fall under this category include Ripple, Fireblocks, and BitGo. The central bank acknowledges the complexity of regulating these entities, as their transactions often occur on decentralized private networks, differing significantly from traditional brokerage or exchange models.
This move builds upon Brazil's existing regulatory foundation. The country passed a key law in 2022 recognizing crypto as a legal payment method. More recently, in November 2025, the central bank issued Resolutions 519 to 521, creating the first formal authorization process for VASPs, which became effective on February 2, 2026. The new institutional framework represents the next layer of oversight, providing clearer licensing requirements, ongoing supervisory checks, and enhanced Anti-Money Laundering (AML) and Know Your Customer (KYC) controls.
Firms will be required to submit structured operational reports, with a commonly cited 270-day reporting window for some activities. The phased rollout is designed to give companies adequate time to adjust their systems and compliance processes. Regulators aim to strike a balance between fostering innovation and protecting the financial system, aligning Brazil's approach with global standards like those from the Financial Action Task Force (FATF).
Concurrently, Brazil's national revenue service is preparing a separate measure that would impose a 3.5% tax on stablecoin flows. This proposal aims to address tax avoidance concerns as stablecoins are increasingly used as dollar substitutes for payments and remittances. If implemented, the tax would apply to both institutions and individuals.
The broader regulatory push, which also includes new rules for banks entering the digital asset market and the ongoing DREX Central Bank Digital Currency (CBDC) pilot, signals Brazil's intent to formally integrate crypto into its traditional financial system. If executed smoothly, Brazil could solidify its position as one of the most structured crypto markets within the G20.
