The Central Bank of Brazil has released draft rules for a phased licensing regime targeting institutional cryptocurrency infrastructure providers, with full implementation by 2027. The framework imposes formal authorization and tighter anti-money laundering controls on business-to-business virtual asset service providers, excluding retail traders. Simultaneously, a tax proposal may levy a 3.5% rate on stablecoin transfers. This regulatory move aims to strengthen oversight and align institutional crypto activity with Brazil’s financial supervision, affecting global firms in custody and settlement.
The Central Bank of Brazil released draft rules on Monday to license and supervise institutional crypto infrastructure providers. This phased regulatory rollout will continue through 2027.
The proposal introduces formal authorization requirements and tighter anti-money laundering controls for business-to-business virtual asset service providers. It targets firms that build and operate digital asset infrastructure for banks and financial companies rather than retail traders.
According to consultation documents published by the central bank, institutional VASPs will need formal authorization to operate. Once approved, companies will have 270 days to disclose activities and demonstrate compliance with operational and reporting standards.
Supervisory procedures will expand gradually between 2026 and 2027. Institutional participants manage custody, settlement, tokenization, and underlying blockchain connections for financial institutions.
Regulators emphasized that tailored compliance solutions are necessary to monitor global settlements and mitigate financial crime risks. Global players such as Ripple, Fireblocks, and BitGo operate in this sector globally.
The Brazilian government is moving forward with simultaneous measures that affect digital asset markets. The Receita Federal is working on a draft measure that will tax some stablecoin transactions at 3.5%, targeting their use as dollar substitutes.
The central bank has already eased rules for traditional banks to enter the crypto market. The new draft extends regulations to background players and enhances AML safeguards and resilience requirements.
Regulators argue that this staged approach allows companies to adjust their compliance tools and reduce systemic risk. The proposed stablecoin tax and AML regulations could have ripple effects in cross-border settlements and institutional interactions with digital assets.
