Virtual Asset Service Provider License in Brazil

In charge of purchase, sale, exchange, or trading of virtual assets

Handling private key management, position control, and executing movement instructions

Combining both intermediary and custodial functions

Serving cross-border transfers via stablecoins/fiat-referenced tokens, which are classified as FX transactions (requires explicit FX authorization)

Algorithmic stablecoins are strictly prohibited. VASPs cannot offer credit to clients or raise funds from the general public (except via stock issuance)

Direct cross-border activity is prohibited. Foreign platforms must establish a Brazilian entity (SPSAV) with local corporate governance.

Base requirements span from R$10.8 million to R$37.2 million depending on operational scale and function (prudentially aligned with securities brokers).

Client fiat (BRL) and digital assets must be fully segregated from the company’s proprietary funds. BRL funds must reside in individual prepaid payment accounts protected from seizure. Omnibus accounts are banned.

Must have at least 3 local directors/officers who reside in Brazil, possess a clean background, and clear the BCB's "fit-and-proper" evaluation.

Must maintain an exclusive physical space in Brazil (coworking spaces are prohibited).

Mandatory transaction monitoring and suspicious activity reporting to COAF. Phased compliance with the FATF Travel Rule starts February 2, 2027 for domestic transactions and 2028 for international transfers

All directors, board members, and controlling shareholders must pass strict suitability (fit and proper) background checks. Individuals with records of financial crimes, bankruptcy, or professional disqualifications are barred

If the ultimate controllers are foreign, the entity must appoint a permanent, legally binding representative residing in Brazil with explicit power to respond to administrative and judicial actions

VASPs must formally designate specific C-level executives to the BCB, including a Chief Compliance Officer (CCO) for Anti-Money Laundering (AML/CFT) reporting and a Chief Risk Officer (CRO) responsible for cybersecurity and operational continuity

Per Normative Instruction No. 701, new applicants must obtain a formal technical certification drafted by a qualified, independent third-party audit firm. This audit evaluates the staff's training, operational readiness, and systemic capabilities before a license is granted

VASPs must run mandatory, continuous compliance and AML training programs for all local staff. Employees must display the operational capacity to handle fraud detection and mitigate client risk

While certain back-office IT or digital custody tools can be outsourced, the local management team retains absolute legal responsibility for systemic failures, customer breaches, or compliance gaps

Foreign platforms are strictly prohibited from serving Brazilian residents directly from abroad. To service the Brazilian market, you must establish a locally incorporated subsidiary (with a valid Brazilian tax ID, or CNPJ) or operate exclusively through a partnership with an already licensed domestic financial institution

The BCB framework specifically targets any entity targeting or marketing to users located within the geographical borders of Brazil

Under Normative Instruction No. 2,291/2025, the DeCripto framework mandates that all localized transactions be transparently documented. Furthermore, Brazilian tax residents must electronically self-report any monthly crypto transactions executed on foreign exchanges or P2P platforms if the total value exceeds BRL 35,000

Capital Gains Tax: Profits derived from selling or exchanging crypto assets exceeding the BRL 35,000 monthly exemption threshold are subject to progressive individual income tax rates (ranging from 15% up to 22.5%)

Crypto Swaps & Yields: Crypto-to-crypto swaps are treated as taxable realization events. Temporary token loans or staking mechanisms are viewed similarly to interest-bearing financial loans, meaning local platforms must withhold income tax at the source on client yields

Indirect/VAT Reform: As part of Brazil's ongoing consumption tax overhaul, VASPs operate under a customized special regime for financial activities to handle the transition to the dual VAT structure (Federal CBS and Sub-national IBS)

VASPs are legally mandated to execute total asset segregation. Client fiat currencies and virtual assets must be completely ring-fenced from the VASP’s operational balance sheets to protect consumer funds in the event of bankruptcy, liquidation, or regulatory intervention

Depending on whether a VASP is registered as an Intermediary or a Broker, the platform is legally obligated to provision transactional payment accounts directly for its clients

Cross-border transactions utilized via stablecoins or fiat-referenced tokens are classified and monitored directly as official Foreign Exchange (FX) operations under BCB oversight

Article 91 of Resolution 520 creates a tight perimeter: traditional Brazilian banking and payment institutions are explicitly forbidden from providing correspondent clearing accounts or processing fiat rails for any crypto provider that is unlicensed or lacks an active, pending BCB authorization status