Brazil is set to classify stablecoin payments as foreign exchange under new regulations, marking a significant step in the country's oversight of the digital asset market. The Central Bank of Brazil's new rules, announced on Monday, November 10, 2025, will require cryptocurrency platforms and digital asset service providers to register with and seek authorization from the central bank before continuing operations.
The regulations, slated to take effect in February 2026, aim to enhance consumer protection, strengthen anti-money laundering (AML) controls, and ensure compliance standards that are consistent with those applied to traditional financial institutions. This move comes as Brazil experiences rapid growth in digital asset usage across both retail and institutional sectors. The central bank emphasized that the regulatory extension supports market integrity and financial stability, aligning with Brazil's strategy of integrating innovative financial technologies into a structured regulatory environment.
A key provision of the new framework is the classification of stablecoins pegged to fiat currencies. These stablecoins will now be recognized as instruments tied to foreign exchange operations. This means that transactions involving international transfers, remittances, and card-based payments conducted through stablecoin systems will be subject to the same oversight applied to conventional foreign exchange transactions. The adjustment seeks to ensure greater transparency in cross-border financial flows and prevent potential misuse of digital assets for illicit activities like tax evasion or money laundering.
According to the central bank, any transaction involving virtual assets pegged to fiat currencies will be treated as a foreign exchange operation. The same classification will apply to international payments or transfers made using virtual assets, including those carried out through cards or other electronic payment methods. If a virtual asset payment or transfer involves an unauthorized counterparty, the transaction will be capped at $100,000.
These new resolutions will take effect in February 2026, and companies will have nine months to adapt to the requirements. Institutions failing to comply by November 2026 will be required to cease operations. Crypto firms operating in Brazil will need to assess their governance structures, compliance frameworks, and operational transparency to meet the new requirements. Companies that do not pursue authorization or fail to satisfy compliance rules will be required to transition clients and wind down services.
The central bank's director of regulation, Gilneu Vivan, stated that the new rules are designed to help prevent scams, fraud, and money laundering using cryptocurrencies. Policymakers have noted that stablecoins are used more for payments than investments, with many users seeking to bypass heavily supervised and taxed traditional payment systems. Central bank governor Gabriel Galipolo had previously described the rise in stablecoin transactions as "significant and worrying," noting that around 90% of Brazil's crypto transaction volume is tied to stablecoins.
Brazil's proactive stance is evident in its multiple public consultations and open communication with the market, reflecting a commitment to innovation and alignment with international standards. The country approved a legal framework for cryptocurrencies in 2022, but its implementation depended on complementary regulations from the central bank. As of 2025, Brazil ranks fifth worldwide in Chainalysis' Global Crypto Adoption Index, a significant rise from tenth place in 2024.
The new framework extends existing requirements for the financial sector, such as customer protection, governance, internal controls, and security, to crypto service providers. This includes establishing compliance and risk management systems, cybersecurity policies, and incident response protocols.
