Brazil’s New Crypto Rules Explained: Who Can Operate, How Much Capital Is Needed, and What’s Changing

Core Insights - Brazil is implementing comprehensive regulations for the crypto industry, marking a significant shift towards tighter supervision and integration into the traditional financial system [1][2][3] Regulatory Framework - The new regulations, introduced through Resolutions 519, 520, and 521, build upon the 2022 Virtual Assets Law, addressing enforcement gaps and establishing the Central Bank of Brazil as the primary regulator [3] - Starting February 2, 2026, all crypto companies in Brazil must obtain a formal license from the Central Bank, with a nine-month grace period for compliance [3][4] Licensing and Compliance - To qualify for a license, crypto firms must provide detailed documentation on corporate governance, risk management, and operational procedures [5] - Only Brazilian-based companies can apply directly for licenses, while foreign exchanges must establish local subsidiaries or partner with licensed domestic entities [5] Capital Requirements - The regulations introduce tiered capital requirements, with minimum thresholds ranging from $2 million to $7 million based on the type of business [6] - Specific capital requirements include: - Exchanges and brokers: minimum capital of 37.2 million reais ($7 million) [7] - Custodians: minimum capital of 18.6 million reais ($3.5 million) [7] - Other service providers: minimum capital of 10.8 million reais ($2 million) [8] - Firms must maintain these funds as paid-in share capital and net equity, while adhering to strict anti-money laundering and counter-terrorism financing regulations [8] Classification of Activities - Certain stablecoin and crypto transfer activities are classified as foreign exchange operations, subjecting them to Brazil's capital market and cross-border reporting requirements [8]