BCB

Key points

• The Central Bank of Brazil, the BCB, is the country's monetary authority and has regulated virtual asset service providers since 2022.
• Besides conducting monetary policy, the BCB operates PIX, the instant payment system used as the main settlement rail in reais.
• BCB regulation of crypto covers operator authorization, anti-money laundering prevention, and conduct and operational security requirements.

What is the BCB?

The Central Bank of Brazil is the monetary authority and the main regulatory body of the national financial system. Its functions include conducting monetary policy, safeguarding the stability of the payment system, and supervising financial institutions. With the Legal Framework for Virtual Assets, it also became the regulator of virtual asset service providers (PSAV) in the country.

How it works

The BCB acts through resolutions, regulatory instructions, and authorization processes. In the traditional financial system, it sets capital, conduct, and transparency rules, and supervises compliance with them. It also operates payment infrastructures, including PIX, available 24 hours a day and integrated with most accounts in Brazil.

In the crypto space, Law 14,478/22 delegated to the Executive Branch the choice of regulatory body, and Decree 11,563/23 designated the BCB for this role with respect to virtual assets that are not securities. It is therefore up to the BCB to define who can operate as a PSAV, what security and governance requirements must be met, and how anti-money laundering rules apply.

Detailed regulation has been built through public consultations and specific rules, which makes the framework a moving target. Tokenized securities remain under the jurisdiction of the Securities and Exchange Commission (CVM).

Why it matters

For a company planning to operate with crypto in Brazil, the BCB sets the rules of entry: who needs authorization, what controls are mandatory, and how to report operations. For the user, the BCB's role connects two worlds, since the same body that regulates virtual assets also operates PIX, used to cash crypto out into reais.

Regulation in Brazil

The BCB's role stems from Law 14,478/22, the Legal Framework for Virtual Assets, complemented by Decree 11,563/23, which designated it as the sector's regulator. Its oversight covers PSAV authorization, prudential and conduct requirements, and integration with the anti-money laundering regime coordinated with Coaf. Since the regulatory framework is still under construction, the set of rules should be monitored as new resolutions are published.