Brazil

The Law No. 14.478/2022, popularly known as the Brazilian Virtual Assets Law, provides the fundamental federal framework for virtual assets in Brazil by defining virtual assets, setting stringent AML requirements, and imposing heavy penalties up to a maximum of eight years of imprisonment in cases of cryptocurrency-related frauds. With the Central Bank of Brazil (BCB) being the principal regulatory authority, this legal framework came into full effect after BCB Resolutions 519, 520, and 521 were implemented. As per the new regulations, all Virtual Asset Service Providers (VASPs) which are locally classified as Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs) have to be authorized by the central bank, implement transaction-identifying 'Travel Rule', segregate corporate client and firm assets stringently, and operate from a fixed physical location in Brazil. Crypto firms have to apply for their official authorizations before the end date of October 30, 2026.