Same Risk, Same Rules: Brazil to Regulate Crypto VASPs Like Traditional Securities Brokerages

The Brazilian central bank has now included VASPS under Type 3 classification, with the same requirements as brokerage and securities distribution firms. Furthermore, the rules passed exclude VASPs from receiving Segment 5 classification, a simplified regime for institutions with a low risk profile.

Key Takeaways

• • Brazil issued Resolution 580/2026 grouping VASPs into Type 3, matching brokerage rules as compliance costs jump.
• • Crypto firms face strict capital and risk rules from Jan 1, 2027, next driving industry consolidation.
• • VASPs will enter Segment 4 by June 30, 2028, losing low-risk perks as the bank next scales up monitoring.

Central Bank of Brazil Equalizes Compliance Treatment Between VASPs and Securities Brokerages

The Central Bank of Brazil is tightening the rules that cryptocurrency companies and virtual asset service providers (VASPs) must follow to operate in the country.

On Wednesday, the bank issued Resolution No. 580/2026, amending Resolutions 436/2024 and 201/2022, to classify companies that provide virtual asset services and conglomerates led by these companies as Type 3.

Before this, the Type 3 classification grouped securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms; now, this class also includes VASPs, applying the same requirements to these institutions.

This means that, starting January 1, 2027, these institutions will be subject to “a set of prudential requirements, including risk management rules, capital requirements, and information disclosure policies.”

According to a statement issued by the central bank, this Type 3 classification “brings the regulatory treatment of these companies closer to that adopted for brokerage and securities distribution firms, reflecting functional similarities between their business models,” in line with international recommendations following the “same activity, same risk, same regulation” principles.

Furthermore, VASPs will be included in Segment 4 regardless of size by June 30, 2028. Segment 4 groups institutions whose size is less than 0.1% (one tenth of one percent) of Brazil’s Gross Domestic Product (GDP).

In the same way, the resolution prevents VASPs from receiving Segment 5 benefits, which include a simplified compliance regime for low-risk-profile institutions.

“With this initiative, the Central Bank is advancing in building a safe and proportionate regulatory environment for the development of activities with virtual assets in Brazil, aligned with international best practices and the evolution of the financial system,” the bank concluded.

Valor Económico highlighted that the measure was not well received by crypto industry executives, who anticipate more consolidation in the ecosystem.

“It doesn’t seem to make much sense in terms of ‘same risk, same regulation’. The positive thing is that it only comes into effect in 2027, so we have time to adjust,” an unidentified executive commented.