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Brazil’s central bank has classified stablecoin transactions as foreign exchange operations, subjecting crypto payments to the same regulatory requirements as traditional currency transfers.
The Banco Central do Brasil (BCB) published three resolutions Monday that will take effect February 2, 2026, bringing stablecoin transfers — which account for 90% of Brazil’s crypto activity — under formal banking oversight including anti-money laundering standards and transaction caps.
According to the BCB, the changes aim to bring “efficiency, legal certainty, and transparency” to Brazil’s rapidly growing digital asset ecosystem.
Under Resolution 521, any purchase, sale, or exchange of fiat-pegged digital assets — including international stablecoin transfers or payments — will be treated as foreign exchange transactions.
This means that stablecoin usage, particularly for cross-border payments, will now fall under the same documentation, reporting, and anti-money laundering (AML) standards that govern foreign currency transfers.
Licensed FX institutions and the newly created category of Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs) — or virtual-asset service providers — will be authorized to handle these transactions. However, transfers involving unlicensed foreign entities will be capped at $100,000 per transaction, according to the BCB.
In an official statement, the central bank explained that the rules were designed to close loopholes:
“The goal is to promote greater efficiency and legal certainty, preventing regulatory arbitrage and aligning crypto activities with Brazil’s balance-of-payments data.”
A particularly notable provision affects self-custody wallets, a cornerstone of decentralized finance. While the rules do not ban self-custody, they require service providers to identify wallet owners and track the origin and destination of transferred assets.
In practical terms, this means that when a regulated broker or exchange facilitates a transaction involving a self-custodied wallet, it must treat it like an FX operation — ensuring transparency and AML compliance even if the transaction doesn’t cross borders.
Crypto lawyer Bruna Nogueira, partner at São Paulo-based fintech law firm Nogueira & Co., commented:
“These new obligations bring crypto into the formal economy. They don’t outlaw innovation — they just ensure that stablecoin payments follow the same rules as fiat money.”
The decision comes as stablecoins dominate Brazil’s crypto economy. Earlier this year, BCB President Gabriel Galípolo revealed that around 90% of all crypto transactions in Brazil involve stablecoins, mostly used for payments and remittances.
He warned that the widespread use of stablecoins outside traditional banking oversight created “regulatory and oversight challenges in money laundering, taxation, and financial integrity.”
The new framework effectively brings stablecoins inside Brazil’s financial perimeter, aligning crypto activity with established monetary policy and anti-crime systems.
The Brazil stablecoin payments classification marks a decisive shift for local crypto businesses. Firms will now be required to obtain licenses, implement bank-grade compliance systems, and report capital-market activities to the BCB.
Smaller startups may struggle with higher compliance costs, while larger exchanges like Mercado Bitcoin and Binance Brazil could adapt more easily given existing oversight structures.
Crypto analyst Rafael de Souza of BitPreço told CoinTelegraph Brasil:
“This levels the playing field between traditional finance and crypto. It’s costly for smaller firms, but it legitimizes stablecoins as part of Brazil’s regulated payments system.”
Brazil’s move also sets a precedent for Latin America’s crypto regulation. The country’s approach — combining consumer protection with innovation — may influence regional partners such as Argentina, Chile, and Mexico, where stablecoin usage is also surging.
Industry observers believe the framework signals a shift from experimental to integrated oversight, embedding digital assets within the national financial system rather than treating them as external instruments.
The message from the central bank is clear: crypto is welcome in Brazil, but it must play by the same rules as fiat money.
By classifying Brazil stablecoin payments as foreign exchange operations, the BCB has brought digital finance under formal supervision, closing the gap between traditional banking and decentralized finance.
As the new framework rolls out, Brazil is positioning itself as a regional leader in crypto regulation, ensuring transparency, safety, and legitimacy — without stifling innovation in one of the world’s most vibrant crypto markets.
