Brazil's Central Bank has approved comprehensive prudential requirements for virtual asset service providers (SPSAVs), bringing them closer to the regulatory framework applied to securities brokers and distributors. According to local media reports, the rules were approved on July 1 and will take effect on January 1, 2027. The new framework requires companies offering cryptocurrency and other virtual asset services to maintain minimum capital reserves, establish formal risk management policies, and periodically disclose information about their financial and operational condition. As per the Central Bank, the measures aim to strengthen the security of the financial system and reduce risks for customers and the market, following the same model already applied to other financial institutions.
The framework introduces a phased transition into Brazil's banking supervision structure, with all virtual asset service providers being placed in Segment 4 (S4) by June 30, 2028. According to the Central Bank, firms providing crypto brokerage, custody, and transfer services will now be classified as Type 3 institutions together with the economic groups they lead. At the same time, institutions classified under Segment 5 (S5) will no longer be permitted to provide virtual asset services because the Central Bank considers those activities incompatible with lighter supervisory standards. The change follows the principle that activities with similar risks should be subject to the same level of regulation, regardless of company size.
The Central Bank stated that the measures are intended to strengthen the financial system and reduce risks for customers and the market. According to the report, the latest prudential framework follows a June rule requiring crypto companies seeking authorization or license renewals to submit independent audit reports prepared by professionals registered with Brazil's securities regulator. These audits review anti-money laundering controls, counter terrorism financing procedures, customer asset segregation, internal risk management, and employee compliance programs before licensing decisions are made. In May, the Central Bank began requiring independent audits of cryptoasset companies as part of the enhanced oversight measures.
The new requirements add to a series of regulatory measures introduced over the past year. In November 2025, the Central Bank published the first operating rules for virtual asset service providers, establishing standards covering governance, anti-money laundering controls, foreign exchange participation, and operational requirements. Earlier this year, Brazil's National Monetary Council required crypto platforms to follow confidentiality rules comparable to those imposed on traditional financial institutions, including compliance with Complementary Law 105 on bank secrecy. In February, the National Monetary Council expanded requirements for the sector by mandating that crypto platforms comply with rules similar to those applied to traditional financial institutions.
Regulators have also tightened oversight in other areas during 2026. In May, Brazil's Central Bank prohibited regulated cross-border electronic foreign exchange providers from using crypto assets to settle international payments, while still allowing digital assets to be traded and transferred outside the supervised payment system. More recently, federal prosecutors reminded political parties that cryptocurrency donations remain prohibited in election campaigns because campaign finance rules require donors to be clearly identified. The creation of virtual asset service providers was provided for by Law 14,478 of 2022, known as the legal framework for cryptoassets, with Brazil's Central Bank designated as the authority responsible for regulating the sector in 2023.
