Brazil's Central Bank has enacted a new comprehensive regulatory framework for the digital asset industry, effectively extending the same rules that govern traditional finance to cryptocurrency service providers.
The rules, announced on Monday, require companies to obtain formal authorization from the Central Bank to operate and comply with strict requirements for customer protection, governance, and anti-money laundering controls.
The regulations classify providers into three categories: intermediaries, custodians, and brokers.
They also include key cryptocurrency activities, such as trading stablecoins linked to fiat currencies and using cryptocurrencies for international transfers, within the scope of existing foreign exchange regulations.
In addition, transactions involving unauthorized counterparties will have a maximum limit of $100,000.