In a significant move to regulate the burgeoning digital finance sector, Brazil's central bank has unveiled a comprehensive set of new rules governing virtual assets, including cryptocurrencies. Announced on Monday, November 10, 2025, these regulations mark a pivotal step in formalizing the crypto market within Latin America's largest economy.
Key Provisions of the New Regulatory Framework
The long-awaited regulations will officially come into force in February 2026. They are designed to extend the country's existing financial oversight to the world of digital currencies. A core component is the application of established anti-money laundering (AML) and counter-terrorism financing (CFT) protocols to virtual-asset service providers (VASPs). This means exchanges, brokers, and other crypto intermediaries will now operate under the same stringent compliance obligations as traditional financial institutions.
Central bank director of regulation, Gilneu Vivan, emphasized the protective nature of the new framework during a press conference. He stated that these measures are intended to "reduce the scope for scams, fraud, and the use of virtual asset markets for money laundering." The regulations also introduce robust requirements for governance, internal controls, security, and customer protection, ensuring greater transparency for all participants in the ecosystem.
Crackdown on Stablecoins and Foreign Exchange Operations
Policymakers have placed a particular focus on the growing use of stablecoins. Central bank governor Gabriel Galipolo had previously expressed concerns that these digital assets, which are pegged to real-world currencies like the U.S. dollar, are often linked to illicit activities.
Under the new rules, a critical change is the classification of any transaction involving virtual assets pegged to a fiat currency. Any purchase, sale, or exchange of such assets will now be considered a foreign exchange operation. This same classification applies to international payments or transfers made using virtual assets, including those used to settle obligations via cards or other electronic payment methods. This move aims to bring a significant portion of crypto transactions, which were previously operating in a grey area, under formal financial supervision.
Background and Implications for the Market
Brazil had initially approved a legal framework for cryptocurrencies back in 2022, but its practical implementation was dependent on these detailed regulations from the central bank. The regulatory body conducted four public consultations to refine the rules, reflecting the complexity and importance of the sector.
The timing of this regulatory push is crucial, as the use of cryptocurrencies has surged in Brazil. Officials noted that stablecoins, being less volatile than assets like Bitcoin, are increasingly used for payments rather than pure investment. Many users have turned to them to bypass more heavily supervised and taxed traditional payment systems. The new framework is a direct response to this trend, aiming to create a safer, more secure, and legally compliant environment for the digital asset industry in Brazil.
