Brazil to Regulate Institutional VASPs by 2027

Brazil’s Central Bank plans to establish regulatory oversight for institutional virtual asset service providers (VASPs) before 2027. The move targets companies providing crypto infrastructure to other businesses rather than retail consumers.

Brazil’s central bank is advancing a regulatory framework for institutional virtual asset service providers (VASPs), outlining licensing, compliance, and supervisory standards with phased implementation through 2027. The move aims to formalize oversight of crypto firms and…

— Wu Blockchain (@WuBlockchain) February 23, 2026

Antônio Marcos Guimarães, deputy head of the bank’s Regulation Department, confirmed the timeline during a recent live transmission. He stated the bank intends to advance institutional VASP regulations within the 2026-2027 horizon.

Companies like Ripple, Fireblocks, and Bitgo would fall under this new classification. These firms operate payment networks, custody services, and various crypto infrastructure products serving other institutions.

The regulatory proposal emerged from the central bank’s public consultations with industry stakeholders. However, stablecoin oversight and other pressing matters delayed progress on this particular initiative.

Brazil’s Complex VASP Models Slow Regulatory Progress

The complexity of institutional VASP operations has complicated regulatory efforts. Unlike retail-facing exchanges, these companies conduct transactions through decentralized private networks without traditional brokerage intermediaries.

Guimarães acknowledged these challenges during his remarks. The lack of centralized clearing mechanisms makes oversight more difficult for regulators accustomed to traditional financial infrastructure.

Meanwhile, the central bank is finalizing authorization criteria for companies currently operating in Brazil. Licensed entities will have 270 days to report their activities once the rules take effect.

This institutional focus builds upon Brazil’s broader crypto regulatory push throughout 2024 and 2025. The country has already streamlined rules for banks entering the crypto market.

Additionally, Brazil’s national revenue service, Receita Federal, is preparing a controversial measure targeting stablecoin transactions. The proposed 3.5% tax aims to close a loophole allowing stablecoin use as dollar proxies for payments.

Foundation Built on November 2025 Framework

The upcoming institutional VASP rules will complement regulations finalized in November 2025. At that time, Brazil’s central bank published three resolutions establishing comprehensive oversight for crypto companies.

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Resolutions 519, 520, and 521 created a new licensed entity category called Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs). These rules brought cryptocurrency companies under banking-style supervision.

The framework applies consumer protection, transparency, and Anti-Money Laundering requirements to crypto businesses. It covers brokers, custodians, and intermediaries operating within Brazilian jurisdiction.

Notably, those resolutions classified stablecoin transactions as foreign-exchange operations. This designation carries significant implications for how businesses handle dollar-pegged digital assets.

The existing rules took effect on February 2, 2026. Mandatory reporting for capital-market and cross-border operations began on May 4, 2026.

Brazil’s phased regulatory approach addresses different market segments systematically. Retail-facing services received attention first, with institutional infrastructure providers now entering the regulatory queue.

The central bank’s consultative process has shaped these developments throughout. Industry input continues informing how regulators approach the unique characteristics of crypto businesses.

Following this trajectory, Brazil positions itself among Latin America’s most comprehensive crypto regulatory regimes. The country balances innovation with oversight across the digital asset ecosystem.

The 2026-2027 timeline gives institutional VASPs advance notice to prepare compliance frameworks. Companies serving other businesses must anticipate operational adjustments as rules crystallize.

Guimarães offered no specific details on what requirements institutional VASPs will face. The regulatory substance will emerge as the central bank advances its consultation and drafting process.