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The Central Bank of Brazil has issued encryption regulatory rules, setting a maximum capital threshold of $7 million.
[Brazil's Central Bank Releases Encryption Regulatory Rules, Sets a Capital Threshold of Up to $7 Million] Brazil's Central Bank has officially announced a regulatory framework for the encryption industry, requiring all Virtual Asset Service Providers (VASPs) to obtain a central bank license and hold at least 10.8 million to 37.2 million reais (approximately $2 million to $7 million) in capital, depending on the type of business. The new regulations bring encryption activities under the supervision of the forex and Capital Market, requiring companies to regularly report cross-border transaction data and impose restrictions on transactions involving stablecoins, hosted wallets, and encryption-to-fiat trading.