Brazil Moves Toward Oversight of Institutional Crypto Firms by 2027

TLDR

• Brazil aims to regulate institutional VASPs by 2027 after consultations.

• Rules would apply to firms like Ripple, Fireblocks, and Bitgo.

• Stablecoin flows may face a 3.5% tax from the national revenue service.

• Central bank is preparing authorization criteria for local operators.

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Brazil is moving toward a new regulatory phase designed for institutional virtual asset service providers by 2027. The Central Bank of Brazil confirmed that it intends to create a framework for organizations that build and operate crypto infrastructure for other businesses. This plan follows a series of public consultations held over the past year.

Institutional VASPs include companies that support the crypto industry through payment networks, custody systems, and infrastructure tools. Ripple, Fireblocks, and Bitgo are among the companies expected to fall under the proposed category. The initiative aims to bring structure to a part of the crypto sector that has grown quickly yet operates under varied models.

Central Bank Sets Timeline for Institutional VASP Rules

During a live broadcast, Antônio Marcos Guimarães, deputy head of the bank’s Regulation Department, said the institution will work on the new framework between 2026 and 2027. He explained that the bank intends to advance regulation for these firms under the Business-to-Business category. He added that this step is part of a broader effort to bring clarity to all areas of the digital asset market.

Guimarães stated that earlier regulatory proposals focused on other areas of the crypto sector. Stablecoins and banking rules received more urgent attention in recent years. He noted that the complexity of institutional VASPs contributed to the slower pace of development because their transactions occur on decentralized private networks without traditional brokerage.

The bank is also completing criteria for authorizing companies that operate in Brazil. Once the criteria are finalized, firms will have 270 days to report their activities to the central bank. This step is expected to prepare the industry for the upcoming transition to new rules.

Scope of the New Regulation

The future framework is aimed at firms that run digital asset systems for other institutions. These firms may manage custody tools, build blockchain networks, or facilitate international payments. Their work often involves infrastructure rather than direct consumer services.

Ripple operates crypto-based payment solutions that allow cross-border settlements. Fireblocks provides secure transaction systems and digital asset management tools. Bitgo, meanwhile, offers custody services used by large institutions. Each of these companies works under models that differ from traditional exchanges.

Because these firms often settle transactions on private decentralized networks, their activities do not resemble conventional trading platforms. This structure has contributed to delays in forming a unified regulatory approach. The central bank intends to design rules that reflect these differences while ensuring consistent oversight.

Stablecoin Tax Proposal Adds to Regulatory Landscape

Brazil’s national revenue service is preparing a new measure that would impose a 3.5% tax on stablecoin flows. The proposal seeks to address the use of stablecoins as dollar substitutes for payments and remittances. These assets have grown in use as consumers and companies look for easy ways to move value across borders.

Local reports say the measure is intended to stop tax avoidance that can occur when stablecoins replace traditional currency transfers. If implemented, the tax would apply to both institutions and individuals who use these assets for transactions or settlements.

The proposed tax comes at a time when the central bank is also updating its broader crypto policy. New rules for banks entering the digital asset market have already been introduced in 2026, creating more structure for financial institutions that offer crypto services.

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