Regulatory Measures Begin to Address Brazil’s Rapidly Growing Crypto Industry

Brazil is strengthening its regulatory approach to cryptocurrency service providers, aiming to establish itself as a major force in the international crypto landscape while tackling the risks that come with the industry's swift expansion. The Central Bank of Brazil revealed in late 2025 that it will implement tighter controls over digital asset companies, making it mandatory for all operators to obtain approval by February 2026 and requiring those who do not comply to leave the market by November 2026. This initiative reflects Brazil’s growing influence in the crypto space, with the nation handling about $319 billion in crypto transactions from mid-2024 to mid-2025, placing it fifth worldwide, according to

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The updated regulations require crypto exchanges, brokers, and custodians to meet standards similar to those in the banking sector, such as implementing advanced cybersecurity measures and ensuring customer safety. Central Bank representatives stressed that these changes are designed to combat fraud, improve transparency, and prevent digital assets from being used for illegal purposes. “The sector has grown faster than regulations could keep up, and this framework introduces essential order,” a regulator commented, highlighting that stablecoins made up 90% of Brazil’s recent crypto transactions, based on

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One of the major changes in the new rules is the reclassification of stablecoin transactions and cross-border payments as foreign exchange activities. This adjustment means that buying, selling, or sending stablecoins abroad will now be regulated in a manner similar to exchanging Brazilian reais for U.S. dollars. Platforms operating without Central Bank authorization will be limited to $100,000 per transaction, as detailed in the .

In addition, lawmakers are considering an ambitious plan to allocate $19 billion for the acquisition of

as part of a sovereign reserve fund, informally called RESBit. Although still in its early phases, this proposal underscores Brazil’s growing interest in incorporating cryptocurrencies into its national financial system.

Brazil’s embrace of crypto has accelerated, with the country rising from tenth to fifth place on Chainalysis’ Global Crypto Adoption Index in 2025. The analytics firm reported that Brazil now represents nearly a third of all crypto activity in Latin America, fueled by widespread stablecoin use and strong institutional participation. “With the transition to a more regulated environment by late 2025, we anticipate Brazil will continue to play a leading role, supported by robust institutional involvement,” Chainalysis noted in the

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The Central Bank’s strategy seeks to balance innovation with effective risk controls, with the goal of building confidence in a sector that has drawn interest from both individual investors and businesses. As the deadlines for compliance approach, the ability of Brazil’s crypto industry to adapt will be crucial in determining its future position in the global digital economy.