Brazilian Central Bank releases regulatory rules for banks providing cryptocurrency services

2026-01-25 01:23:12

Source: PortaldoBitcoin Original Title: Central Bank Sets Rules for Banks to Offer Cryptocurrency Services Original Link: https://portaldobitcoin.uol.com.br/banco-central-define-regras-para-bancos-oferecerem-servicos-de-criptomoedas/ The Central Bank of Brazil issued rules this Thursday (22nd) for banks to provide clients with cryptocurrency buying and selling services. The main point is the requirement to hire external auditors to demonstrate good practices in virtual asset asset segregation.

Normative Instruction No. 701/2026 applies to the entities mentioned in Article 20 of Resolution No. 520: commercial banks, foreign exchange banks, investment banks, universal banks, Banco do Brasil, securities brokerage firms, securities distribution companies, and foreign exchange brokers.

Banks wishing to offer virtual asset services (such as custody and brokerage) must obtain technical certification prepared by qualified and independent companies. Brokerage is a term used by the Central Bank for activities involving buying, selling, and exchanging cryptocurrencies for reais.

This report should demonstrate that the bank effectively segregates clients’ virtual assets from the institution’s own assets and provide reserve proof, confirming that the company indeed holds the virtual assets claimed on behalf of its clients and users.

The document must also demonstrate that the bank has appropriate governance and compliance structures, including risk and capital management and cybersecurity policies. The regulation significantly expands the scope of technical certification and should also assess the capabilities of third-party service providers (including technology and cloud computing services) and the recovery plan in case of events affecting client assets.

Conclusive opinions should also confirm the existence of internal controls, anti-money laundering policies, and ongoing monitoring mechanisms for risks and incidents. The Central Bank may require further detailed reporting, which should be available for at least five years for supervisory purposes.

The normative instruction will take effect on February 2, 2026, and from that date, institutions will be subject to the new requirements.

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