Brazil to Enforce Strict Crypto Regulations By 2026 With Central Bank Oversight

All crypto firms in Brazil must gain Central Bank approval by 2026, adhering to banking-level standards.

Stablecoin transactions will be treated as foreign exchange operations, with limits on unapproved platforms.

Brazil is considering a $19B Bitcoin reserve plan to position Bitcoin as a strategic national asset.

Brazil is stepping up its regulatory efforts in the cryptocurrency sector. Starting in February 2026, all crypto companies operating within the country will need approval from the Central Bank. This new framework applies banking-level rules to exchanges, custodians, and stablecoin transfers. The move comes as Brazil’s crypto market grows rapidly, becoming one of the largest in the world. By implementing these regulations, Brazil aims to improve investor protection and reduce fraud.

New Framework to Apply Banking Standards

Under the new regulations, all cryptocurrency exchanges, brokers, and custodians must comply with strict internal controls. These include implementing cybersecurity measures and customer protection policies. The Central Bank’s director of regulation emphasized that the tighter oversight is necessary to protect regular users and prevent illegal activities within the sector. Crypto companies must submit applications for authorization to operate by February 2026. Companies failing to comply will have until November 2026 to exit the market.

The new regulations also introduce significant changes in how stablecoins and international crypto transfers are treated. Any transactions involving stablecoins will now be classified as foreign exchange operations. This includes buying, selling, or transferring stablecoins across borders. Transfers involving unapproved platforms will be limited to $100,000 per transaction. These changes aim to reduce the growing use of stablecoins for payments rather than speculative investments.

Protection and Transparency for Investors

The regulation of cryptocurrency companies is seen as a step towards curbing fraudulent activities and a move towards the creation of a more transparent market. The Brazilian crypto market has been on a rapid growth trajectory and is said to have potentially reached up to $319 billion in transactions from mid-2024 to mid-2025. With the Central Bank controlling the crypto companies, Brazil is trying to make digital assets acceptable, just like traditional financial systems. This will also make sure that the clients’ money is safe, and the companies will have to maintain it separately from their own money.Besides this, the Brazilian legislators are contemplating the adoption of a $19 billion Bitcoin purchase for the country’s reserves of crypto as part of the national treasury. The RESBit plan is the name of this proposal, which, if accepted, would have Bitcoin recognized as a significant national resource. In this case, Brazil would be one of the first major economies to own Bitcoin as part of its official reserves. For the bill, it is still very much in the initial phase and needs to go through multiple legislative committees before it can even get to the Senate. These developments indicate a drastic change in Brazil’s policy toward digital currencies, as it is moving toward unambiguous regulatory and supervisory frameworks in the burgeoning cryptocurrency market.