Brazil treats crypto VASPs like securities brokerages
Brazil’s central bank classified virtual asset service providers as Type 3, applying the same prudential rules as securities brokerages from Jan. 1, 2027.
The Central Bank of Brazil issued Resolution No. 580/2026 classifying virtual asset service providers and conglomerates led by them as Type 3. The resolution amends Resolutions 436/2024 and 201/2022 and takes effect on Jan. 1, 2027.
Under the Type 3 label, VASPs must meet a set of prudential requirements including risk-management frameworks, minimum capital buffers and information-disclosure obligations aligned with those for securities brokerage and distribution firms.
The resolution places all VASPs in Segment 4 by June 30, 2028 regardless of size. Segment 4 covers institutions whose size is less than 0.1% of Brazil’s gross domestic product. The rules also bar VASPs from qualifying for Segment 5, the simplified regime for institutions with a low risk profile.
The central bank said the change follows international recommendations and the principle of “same activity, same risk, same regulation,” citing functional similarities between VASP business models and traditional brokerage activity.
Industry executives questioned the rationale and raised concerns about higher compliance costs and consolidation. An unidentified executive said the classification “doesn’t seem to make much sense in terms of ‘same risk, same regulation'” and noted the 2027 start date allows time to adjust.
The resolution also indicates the central bank will increase supervisory monitoring of institutions that carry virtual-asset business activities. Firms will need to change internal controls, reporting systems and capital planning to meet the Type 3 requirements.
With the deadlines set, VASPs operating in Brazil now have a clear timetable for compliance and reclassification into stricter supervisory segments.
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