Brazil s Central Bank Implements New Regulations for Virtual Asset Service Providers

The Central Bank of Brazil is set to introduce new regulations for Virtual Asset Service Providers VASPs , requiring them to report specific data. This move aims to standardize compliance mechanisms in the digital asset sector, with the new rules taking effect in February.
The updated procedures will assign new responsibilities to VASPs regarding anti-money laundering measures. Eduardo Liberato, an advisor in the central bank s regulation department, emphasized the need for VASPs to provide information in a systematized way. He stated,
An issue present to all PSAVs is the need to provide information to the Central Bank in a systematized way.
To ease the transition, cryptocurrency providers operating in Brazil will be allowed to continue their operations for nine months after the new rules take effect. Liberato assured,
Until the end of the term, companies can continue to operate normally.
The standardization of information reporting signifies the central bank s commitment to implementing these regulations, despite potential opposition from the Brazilian Congress. Recent proposals to tax stablecoin transactions as foreign flows have been rejected by Congress, and a draft law declaring them illegal was introduced, arguing that the central bank exceeded its authority.
As long as there is no significant opposition to these measures, VASPs will need to comply with the upcoming rules and provide the required information to the central bank.