Brazilian Central Bank issues guidelines for cryptocurrency businesses

The Central Bank of Brazil has just issued new regulations for banks and brokerage firms wishing to participate in cryptocurrency activities, tightening the supervisory framework for digital asset sectors.

According to PANews, these organizations are required to hire an independent qualified entity to verify and certify their compliance with the monetary authority’s regulations for virtual asset service providers (PSAV). The certifying entity must clearly demonstrate that there is no conflict of interest with the audited organization.

The new regulations aim to enhance transparency, reduce systemic risk, and protect investors amid the growing cryptocurrency market in Brazil. This move also indicates that authorities are proactively building a more robust legal framework, preparing for the legalization phase and expanding services related to digital assets within the traditional financial system.