Plasma

Global Stablecoin Regulation

Brazil

Brazil

by
Plasma
Plasma
Last Updated: May 20, 2026
Brazil's central bank issued a three-part rule set in November 2025 — Res. BCB 519, 520, and 521 — bringing virtual-asset service providers (VASPs) under BCB authorisation and classifying fiat-pegged stablecoin transactions as foreign-exchange operations. The framework entered into force on 2 February 2026, with FX/VA reporting to BCB beginning 4 May 2026 and a 270-day VASP authorisation transition ending 30 October 2026. Reserve backing requirements under Res. 520 mandate full 1:1 fiat or government-securities backing for fiat-referenced stablecoins. BCB Instruction 701/2026 introduced independent proof-of-reserves certification as a condition for VASP authorisation. In April 2026, BCB Resolution 561 banned eFX providers from using stablecoins or crypto in cross-border settlement, effective 1 October 2026 — significantly restricting the cross-border use case that Res. 521 appeared to enable.

CoinDesk

Reuters

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Legal Status

Legal with restrictions

Regularity Clarity
4/5
Regime Status

In-Force

Allowed Types

Fiat Referenced

Classification

Payment Instrument

Function Dependent

Brazil classifies operations with fiat-pegged crypto (stablecoins) within the foreign-exchange and international-capital perimeter under Resolução BCB nº 521/2025, issued alongside Res. 519/2025 and 520/2025. In practice, covered payments, remittances and cross-border transfers involving stablecoins are treated as FX/capital-market operations and must be reported to the Central Bank; major outlets also note new duties to identify/trace self-custody wallets. Res. 520/2025 establishes the authorization and prudential regime for VASPs, requiring governance, risk management, cybersecurity and AML/CFT controls. The rules take effect on 2 Feb 2026, with information-reporting to the BCB from 4 May 2026. The aim is to add legal certainty, curb arbitrage/illicit use, and integrate these flows into official FX statistics.

BCB official note

Res. 521/2025

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Regulatory Authorities

Central Bank of Brazil (Banco Central do Brasil, BCB)

Primary regulator for stablecoins and virtual asset service providers (VASPs). Classifies stablecoin transactions as foreign exchange operations, issues licenses, and enforces AML/CFT, capital, and reporting requirements.

Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários, CVM)

Regulates digital assets that qualify as securities. Acts as the SEC equivalent but does not regulate stablecoins unless they have security-like features.

Consumer Protection

Reserve Requirements

Res. 520/2025 requires fiat-referenced stablecoins (ativos virtuais fiat-referenciados) to be fully backed by fiat currency or government securities — effectively a 1:1 reserve requirement. The reserve assets must be held in segregated custody. BCB Instruction 701/2026 (published early 2026) further requires an independent technical certification of asset segregation and proof-of-reserves, as well as an independent audit of mint/burn mechanisms, as part of VASP authorization applications.

Auditing

The framework extends governance, internal controls, security, transparency and AML/CFT obligations to VASPs under Res. 520/2025, but does not mandate a particular audit/attestation standard (e.g., ISAE 3402/SOC) or a set monthly cadence. Reporting of covered FX/VA operations to the BCB begins 4 May 2026.

Redemption Rights

Brazil’s resolutions do not establish a statutory par-value redemption right for stablecoins. Any redemption terms remain contractual, subject to the general conduct/consumer-protection and prudential requirements applicable to authorised providers.

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