Brazil Crypto Regulation Tightens: Central Bank to Oversee All Digital Asset Firms by 2026

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Brazil is stepping deeper into cryptocurrency regulation as the Central Bank rolls out a new framework designed to oversee digital asset companies operating in the country. The move comes as Brazil’s crypto economy continues to surge, processing an estimated $319 billion worth of transactions between mid-2024 and mid-2025. That volume positions Brazil as the fifth-largest crypto market globally, according to data from Chainalysis.

Officials say the goal is not to restrict crypto usage but to bring structure to an industry that has grown faster than its rules. The Central Bank announced that starting in February 2026, all crypto firms must request authorization to operate. Companies that fail to comply have until November 2026 to exit the market.

Crypto Companies Will Operate Under Banking-Level Rules

Under the new framework, crypto exchanges, brokers, and custodians will be held to standards similar to traditional financial institutions. They must implement internal controls, cybersecurity procedures, and customer protection policies. The Central Bank says that bringing digital asset firms into its existing supervisory system will reduce fraud and improve market transparency.

Executives who have watched a growing number of scams over the past year say the move is overdue. The bank’s director of regulation explained that tighter oversight will reduce the misuse of digital assets for illegal activities and help protect regular users who treat crypto as part of everyday finance.

Stablecoins and International Transfers Face New Classification

One of the biggest shifts involves how stablecoins and cross-border crypto transfers are treated. Under the new rules, any purchase, sale, or international transfer of stablecoins will be categorized as a foreign exchange operation, similar to converting Brazilian reais into US dollars. If a transfer involves a platform that is not authorized by Brazil, it will be limited to $100,000 per transaction. Officials say the clampdown is a response to stablecoins increasingly being used for payments rather than speculation.

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Brazil Considers a Bitcoin Reserve for National Strategy

Beyond regulation, lawmakers are debating a proposal that would place Bitcoin directly into the country’s reserves. The plan, informally called RESBit, would allocate $19 billion toward purchasing Bitcoin as a strategic asset. Backers compare the move to holding gold and argue that Bitcoin could help Brazil reduce its dependence on the US dollar.

The bill is still early in the legislative process and must pass through several committees before it reaches the Senate. If approved, Brazil would become one of the first major economies to hold Bitcoin at a national reserve level.

What This Means for Crypto

For exchanges, stricter rules will raise operational costs but also offer legitimacy. Registering with the Central Bank gives platforms easier access to banking relationships and stronger trust from crypto users. Moreover, for investors, customer funds will need to be held separately from company funds, reducing the risk of misuse. Clear regulation could also open the door for institutional players who have hesitated due to the legal gray area.