The government has unveiled a new set of crypto regulations placing stablecoins under foreign exchange supervision, one of the strongest such steps to date by Brazil’s central bank. The Banco Central do Brasil proposed the new framework on November 10, promising stability, oversight, and a degree of transparency for a fast-growing part of the financial system hitherto characterised by little control.
Stablecoins have become hugely popular in Brazil, making up almost 90% of all crypto transactions, according to BCB President Gabriel Galipolo. Their convenience and low transaction costs made them a popular favourite for both payments and remittances. But it is those very features that regulators worry make stablecoins an easy tool for tax evasion and money laundering, prompting the government to step in.
Under the new regime, all stablecoin-related transactions, such as payments for goods, cross-border transfers, and exchanges between cryptocurrency and fiat, are placed under the category of foreign exchange operations. This implies that such activities will have to be channelled through licensed FX institutions or a new kind of regulated entity called Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs).
There will also be a cap on dealing with unlicensed foreign counterparties of $100,000 per transaction, and every transfer should be accompanied by adequate documentation proving the source and purpose of the funds. Even transfers involving self-custodied wallets will be monitored if a service provider is involved in that particular transaction. Instead of a ban on self-custody, the new rules prescribe that platforms verify the wallet owner’s identity and check where the money comes from and where it goes.
The framework officially takes effect on February 2, 2026, and includes new licensing requirements for virtual asset companies operating in Brazil. The licensed providers will be expected to adhere to strict reporting, consumer protection, and conflict of interest rules, similar to what traditional banks already follow.
The central bank said the main purpose of these regulations is to “bring greater efficiency and legal certainty” to crypto operations, prevent regulatory loopholes, and ensure the country’s financial statistics remain accurate as more money moves digitally. Additional reporting requirements for cross-border and capital market transactions will start in May 2026.
Globally, the step by Brazil has come after a wave of new stablecoin regulations worldwide. After the United States introduced the GENIUS Act early this year, a number of countries accelerated efforts to oversee this fast-growing market of stablecoins. Transactions involving such stablecoins jumped over 70% since the US law was passed, underlining their growing importance.
Other countries, like South Korea and the United Kingdom, are not lagging behind either. South Korea is also testing bank-issued stablecoins through its Project Hangang pilot and will submit a regulatory framework before the end of this year. The Bank of England issued a consultation paper on November 10, giving signals of a coordinated global push to manage the risks tied to stable digital currencies.
Meanwhile, Brazil is considering adding Bitcoin to its national reserves. The topic will be debated by officials later this month during the Central Banking Autumn Meetings in Rio de Janeiro, where lawmakers from across Latin America will be discussing Bitcoin’s possible role in sovereign wealth strategies. In fact, lawmakers have already filed a bill that would provide for a $19 billion Bitcoin reserve, seeing it as a hedge against inflation and a way for Brazil to increase its financial independence over the long haul. In short, Brazil’s new framework marks an important turning point by putting stablecoins under the same strict supervision as foreign currencies, establishing a regulated structure for crypto businesses, and signalling the country’s growing interest in digital assets within its economic strategy.