Brazil has made a historic move in cryptocurrency regulation. The country’s central bank announced sweeping new rules that treat stablecoin transactions just like traditional foreign exchange operations. This change affects the world’s fifth-largest crypto market and sets a new standard for digital asset oversight.
On Monday, November 10, 2025, the Banco Central do Brasil published three major resolutions (519, 520, and 521) that will reshape how crypto companies operate. These rules bring stablecoin transactions under the same regulations used for converting Brazilian reais to US dollars.
Why This Matters for Brazil’s Crypto Market
Brazil processed an estimated $319 billion worth of crypto transactions between mid-2024 and mid-2025, making it the fifth-largest crypto market globally according to Chainalysis data. What makes this particularly important is that around 90% of Brazil’s crypto activity involves stablecoins. These digital tokens are pegged to regular currencies like the US dollar and are mainly used for payments rather than speculation.
The new rules address a growing concern among Brazilian regulators. Gabriel Galipolo, the central bank president, said in February 2025 that around 90% of crypto activity in Brazil involved stablecoins, describing the rise as “significant and worrying.” The problem isn’t the technology itself, but how these digital assets have been used to bypass traditional financial oversight.
Source: bcb.gov.br
Stablecoins offer faster and cheaper transactions than traditional banking. However, they’ve also been linked to tax evasion and money laundering. By treating them as foreign exchange operations, Brazil aims to close regulatory gaps while keeping the benefits of digital payments.
New Licensing Requirements and Capital Rules
The regulations create a new type of business license called “Sociedades Prestadoras de Serviços de Ativos Virtuais” (SPSAVs). Any company that handles crypto transactions in Brazil must get this license from the central bank.
The capital requirements are substantial. Companies need at least 10.8 million reais ($2 million) to operate. Depending on the type of business, some companies may need up to 37.2 million reais (approximately $7 million). This represents a significant increase from the 1-3 million reais originally proposed during public consultations.
These licensed companies must follow the same rules as traditional financial institutions. They need consumer protection measures, anti-money laundering controls, and detailed reporting systems. The goal is to bring crypto firms under banking-level oversight without stifling innovation.
Transaction Limits and Self-Custody Rules
Under the new framework, any purchase, sale, or international transfer of stablecoins becomes a foreign exchange operation. This includes using stablecoins for everyday payments or sending money abroad.
Transactions with unlicensed foreign companies are capped at $100,000. This limit prevents people from moving large amounts of money outside traditional financial channels without proper oversight.
The rules also cover self-custody wallets when a licensed service provider is involved. Companies must identify wallet owners and verify where transferred assets come from and where they’re going. This extends anti-money laundering requirements to areas previously outside regulated finance.
Importantly, Brazil isn’t banning self-custody wallets outright. Instead, regulated exchanges must treat wallet interactions like formal foreign exchange operations. This approach maintains user freedom while ensuring proper oversight.
Implementation Timeline and Industry Impact
The new rules take effect on February 2, 2026. Existing companies have nine months to comply or risk being shut down. Foreign firms serving Brazilian customers must establish local operations under Brazilian law.
Starting May 4, 2026, licensed companies must report detailed monthly information to the central bank. This includes client details, asset types, amounts in reais, and relationships between counterparties.
Bernardo Srur, president of the Brazilian Association of Cryptoeconomy (ABCripto), called the framework “positive and necessary” but criticized the high capital requirements and tight compliance timeline. These factors could reduce competition by favoring larger, well-funded companies over smaller innovators.
Global Context and Future Implications
Brazil’s approach puts it ahead of most major economies in stablecoin regulation. The move comes as countries worldwide race to establish crypto frameworks following the US GENIUS Act earlier this year.
The regulations align with Brazil’s broader financial strategy. By making stablecoin transfers visible in official balance-of-payments data, the central bank gains better insight into money flows that were previously hidden from economic statistics.
Brazil is also considering adding Bitcoin to its national reserves. The proposed “RESBit” plan would allocate $19 billion toward purchasing Bitcoin as a strategic asset, similar to holding gold reserves.
The new framework sends a clear message: crypto is welcome in Brazil’s financial system, but it must follow the same rules as traditional money. This approach could influence how other Latin American countries regulate digital assets.
The Digital Real Revolution
These regulations represent more than just crypto oversight. They’re part of Brazil’s transition to a more digital financial system while maintaining proper controls against fraud and money laundering.
Brazil’s decision to treat stablecoins as foreign exchange operations creates a comprehensive regulatory framework without banning innovation. The country has positioned itself as a leader in crypto regulation while addressing legitimate concerns about financial stability and consumer protection. As other nations watch Brazil’s implementation, these rules may become a model for balancing innovation with oversight in the global digital economy.