Brazil’s Central Bank approved a new regulatory framework on July 1 that will require virtual asset service providers (VASPs) to meet tougher capital, risk management, and disclosure standards starting January 1, 2027. The rules, set out in Resolution No. 580/2026, reclassify crypto platforms as Type 3 institutions—the same category used for traditional securities brokerages and distributors—placing them under more prudential supervision.
Under the new requirements, crypto firms must maintain minimum capital reserves to cover potential losses, implement formal risk policies, and submit regular reports on their financial and operational health. By June 30, 2028, all VASPs will be moved into Segment 4 (S4) of the central bank’s supervisory system, regardless of company size. This segment carries stricter compliance obligations than the simpler S5 category, which the central bank deemed “incompatible” with the risks of crypto activities.
The central bank has been building this framework since Law 14,478/2022 granted it authority over virtual assets. In November 2025, it published Resolutions 519, 520, and 521, establishing capital floors between R$10.8 million and R$37.2 million (roughly $2 million to $7 million) for crypto firms, along with anti-money laundering protocols and asset segregation rules. February 2026 saw the National Monetary Council extend bank secrecy requirements to crypto platforms, and in May 2026, the central bank mandated independent audits conducted by professionals registered with Brazil’s securities regulator (CVM).
The reclassification is expected to increase compliance costs, particularly for smaller firms. Industry figures, such as Carlos Russo of Bloquo and the Brazilian Association of Tokenization and Digital Assets (ABToken), anticipate consolidation as smaller platforms struggle to absorb the new burdens. While some executives questioned the brokerage-level equivalence, they acknowledged that the 2027 start date provides a transition period to adapt. Brazil processed an estimated $318 billion in crypto transactions between mid-2024 and mid-2025, underscoring the market’s size and the importance of these rules. The central bank stated its actions align with international best practices for virtual asset regulation.
