Brazil Introduces Banking-Level Oversight for Crypto and Stablecoin Operations

Brazil's central bank has enacted sweeping reforms that align stablecoin transactions with foreign-exchange operations, marking a pivotal shift in regulatory oversight. The Banco Central do Brasil's Resolutions 519-521 establish stringent licensing requirements for virtual-asset service providers, mirroring banking-sector standards for anti-money laundering and transparency.

Crypto brokers and custodians must now operate as Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs), facing rigorous documentation and user verification protocols. The rules impose transfer limits and restrict unlicensed foreign intermediaries, potentially triggering industry consolidation as smaller firms grapple with 2026 compliance deadlines.

This regulatory framework elevates Brazil's crypto market to institutional-grade status while creating barriers for non-compliant operators. Market participants anticipate accelerated M&A activity as the new regime favors well-capitalized entities capable of meeting banking-level operational requirements.