Brazil Virtual Assets Legal Framework

Law 14,478/2022 defines a virtual asset as a digital representation of value that can be traded or transferred electronically and used for payments or investment. The definition excludes national and foreign currency, electronic money, loyalty points or similar access instruments, and assets already regulated as securities or financial assets.

The framework treats a VASP as a legal entity that performs, on behalf of third parties, at least one covered virtual asset service. Covered activities include exchange between virtual assets and fiat currency, exchange between virtual assets, transfer, custody or administration of virtual assets, and financial services connected to an issuer’s offer or sale of virtual assets.

VASPs may operate in Brazil only with prior authorization from the designated federal authority. Decree No. 11,563/2023 assigns that role to the BCB, including authority to regulate virtual asset services, authorize and supervise VASPs, and discipline their operation. The decree does not alter the jurisdiction of the Comissão de Valores Mobiliários, or CVM, over securities.

BCB Resolutions 519, 520 and 521 now supply the main implementing layer. Resolution 519 addresses authorization procedures for VASPs and related financial-market entities. Resolution 520 governs the constitution, operation, governance and service rules for Brazilian virtual asset service companies and for BCB-authorized institutions. Resolution 521 brings specified virtual-asset activities into the foreign exchange and international-capital framework, including certain transfers and fiat-referenced virtual asset operations.

The law’s policy directions include free enterprise and competition, governance, transparency, risk-based controls, information security, data protection, consumer protection, operational soundness, and prevention of money laundering, terrorism financing and proliferation financing. Brazil’s Consumer Defense Code applies to virtual asset market operations where relevant.

The framework also creates a criminal-law hook for fraud involving virtual assets, securities or financial assets and adds VASPs to Brazil’s anti-money-laundering perimeter. Those provisions connect virtual asset services to financial-crime, consumer-protection and supervisory frameworks already used in Brazil’s regulated financial markets.

As of Jun. 3, 2026, the framework is active. Editors should track BCB sub-regulatory instructions and transition dates. This profile is informational and does not provide legal, tax, investment or compliance advice.