Brazil’s central bank releases a crypto regulatory framework, setting a capital threshold of up to $7 million for companies and applying for licenses

(Source: Wu Shuo)

The Central Bank of Brazil officially announced the regulatory framework for encryption service providers, requiring relevant companies to obtain licenses and comply with foreign exchange and capital market rules, and international transactions must be reported regularly. According to regulations, the minimum capital for crypto businesses is 10.8 million reais (approximately $2 million), with some business types required to hold at least 37.2 million reais (approximately $7 million). Those who fail to meet the standards on time will be prohibited from operating, and overseas platforms must establish local entities in Brazil to serve customers. The framework also incorporates stablecoins and cross-border transfers into the foreign exchange regulatory system, sets a limit of US$100,000 per transaction on self-hosted wallet transactions, and requires monthly reporting of transaction data to the central bank starting in May. As previously reported, the new regulations will take effect on February 2, 2025, and existing companies must complete compliance within nine months. (CoinDesk)

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