Brazil’s central bank classifies stablecoins as foreign exchange – Details
The post Brazil’s central bank classifies stablecoins as foreign exchange – Details appeared on BitcoinEthereumNews.com.
Key Takeaways When will these rules take effect? The regulations take effect on 2nd February 2026, with additional reporting starting on 4th May 2026. Who will need authorization to operate under the new framework? All virtual asset service providers (VASPs), including brokers, custodians, and intermediaries, must obtain authorization from the central bank. Brazil’s Central Bank (BCB) has finalized a comprehensive set of regulations bringing cryptocurrency companies under banking-style supervision. Under Resolutions 519, 520, and 521, published on the 10th of November, BCB officially classified stablecoin transactions and certain self-custody wallet transfers as foreign-exchange operations. Brazil’s Central Bank’s new crypto rules BCB announced that the rules will take effect on the 2nd of February 2026, with additional reporting requirements for cross-border and capital-market operations set for the 4th of May. The framework mandates that virtual asset service providers (VASPs), including brokers, custodians, and intermediaries, must obtain official authorization from the central bank before operating. Moreover, firms will have until November 2026 to fully comply or cease operations altogether. The new system introduces comprehensive banking-grade oversight for all crypto activities. This oversight includes strict compliance obligations related to governance, transparency, internal controls, cybersecurity and Anti-Money Laundering (AML) protocols. For the first time, stablecoin transactions and some self-custody transfers will be classified as foreign-exchange operations. This means that any purchases, sales, or international settlements involving fiat-backed stablecoins will be treated in the same manner as traditional foreign exchange transactions. Safety measures To curb misuse, the central bank imposed a $100,000 cap on transactions with unauthorized counterparties. This came amid a surge in stablecoin use across Brazil, where digital assets are increasingly being leveraged for payments and remittances rather than just speculation. The framework builds upon Brazil’s 2022 crypto law. It laid the legal foundation for virtual assets but required central bank guidance for…
