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According to Cointelegraph, Coinbase has submitted an application for a cryptocurrency service provider license to the Central Bank of Brazil to meet the local application deadline of October 30.Coinbase stated that it does not expect existing services to be suspended during the regulatory review of the application. According to Brazilian regulations, existing service providers that submit applications on time can continue to operate during the approval period. Coinbase also plans to expand its foreign exchange and payment services in Brazil in the future, but these services will require separate regulatory authorization.

According to Solid Intel, Brazil's largest bank Itaú Unibanco has become the first bank to officially engage in cryptocurrency trading and custody services under the new regulations set by the Central Bank of Brazil. The bank has reported the relevant business to the Central Bank of Brazil on Tuesday, ahead of the deadline of October 30.

According to CoinDesk, Brazilian companies turned to stablecoins during the elections last Sunday (October 25) to avoid the risk of local currency depreciation. The cryptocurrency exchange Mercado Bitcoin stated that corporate accounts contributed 78% of the trading volume that day. On election day, the trading volume of USDT surged nearly 800% compared to the same day the previous week, more than three times the average of the previous four Sundays; Bitcoin trading volume increased by 865% compared to the previous Sunday.Data from Biscoint shows that the trading volume of USDT against the Brazilian real increased by 150% compared to the previous Sunday, while USDC increased by 318%. Pedro Fontes, a research analyst at Mercado Bitcoin, stated that in the face of increasing exchange rate pressure, stablecoins like USDT and USDC provide a simple way to dollarize some assets. Concerns for businesses became reality on Monday: Brazil's benchmark Ibovespa index plummeted by 14%, marking the worst performance since March 2020; the dollar rose over 8% against the real, the largest single-day increase since 1999. On Monday, the combined trading volume of USDT and USDC reached 1.84 billion reais (approximately 350 million USD), up 65% from the previous week.

Binance has submitted a cryptocurrency service provider license application to the Central Bank of Brazil through its local entity BBrasil, in order to maintain its operations in one of the largest cryptocurrency markets in Latin America before the regulatory deadline of October 30. The application was submitted on October 23, and the company stated that this will allow Brazilian users to continue accessing cryptocurrency assets, stablecoin trading, payment, and investment services.Meanwhile, Binance announced that changes for Brazilian users will take effect on Tuesday, including restrictions on crypto lending, margin trading, and other services, and will delist 22 cryptocurrency assets in the country. Thiago Sarandy, General Manager of Binance Brazil, stated that the company supports the consideration of regulated markets for virtual asset characteristics and hopes that ongoing dialogue with the Central Bank of Brazil will enable it to offer other products that were suspended to comply with current regulations in the near future.According to the regulations of the Central Bank of Brazil, existing cryptocurrency service providers must submit authorization applications by October 30 to continue operating under transitional arrangements. However, submitting an application does not equate to obtaining regulatory approval; Binance still needs to wait for the official review results from the Central Bank of Brazil to determine whether its local business can operate in full compliance.

The Brazilian small-cap stock index plummeted 30%, marking the largest drop in history.

According to Jinshi Data, Brazilian stock index futures plummeted by 15%, hitting the limit down, after Brazilian President Lula won the election.

According to Catcher Predict monitoring, the probability of the "Yes" option for the sub-market "Luiz Inácio Lula da Silva" in the event of the "Brazilian Presidential Election" on the prediction market Polymarket has experienced significant fluctuations, rising from 32.8% an hour ago to the current 58.35% (a fluctuation of 25.55%). Please note the impact of related breaking news.

According to Bank of America citing EPFR data, in the week ending Wednesday, emerging market stocks saw an inflow of $17.7 billion, the highest since July; among them, Brazil recorded an inflow of $4.7 billion.

The Brazilian Securities Commission (CVM) issued Resolution No. 249, launching a tokenized securities experimental project to test simulated stock trading and securities issuance, operation, and management on a blockchain network. The project will take place in a controlled environment, using stocks and funds that are specially created simulated assets, without involving real financial risks.The project will compare the advantages and disadvantages of public chains versus private chains for securities business and assess risks such as network security, smart contracts, interoperability, and network resilience. The blockchain networks participating in the pilot must encode market rules into smart contracts, maintain privacy in securities operations, and be subject to audits by regulatory agencies. Brazil's largest stock exchange, B3, is building a tokenization platform, which is scheduled to launch in 2027 and will use a self-developed stablecoin. Initially, it will not provide round-the-clock trading and will integrate liquidity pools of digital assets and traditional markets.

According to Bitcoin.com, Brazil's largest stock exchange B3 plans to launch a tokenized asset platform in the first half of 2027. Tokenized securities will share prices and liquidity with traditional stocks, but initially will still use the T+2 settlement mechanism.B3's Product Director Humberto Costa stated that the 24/7 continuous trading and instant settlement features still require approval from regulatory authorities. In addition, B3 also plans to launch its own stablecoin and has applied to the Central Bank of Brazil for qualifications in digital asset operations and custody. It has not yet been confirmed whether these two products will be interoperable at the initial launch.

According to Catcher Predict monitoring, the probability of the "Yes" option for the sub-market "Luiz Inácio Lula da Silva" in the event "Brazil Presidential Election" on the prediction market Polymarket has experienced significant fluctuations, dropping sharply from 35.5% an hour ago to the current 15% (a fluctuation of 20.5%). Please note the impact of related breaking news.

According to Bitcoin.com, the Brazilian presidential election will be held on October 4, and the results may influence the direction of the country's cryptocurrency policies, which have the highest global adoption rate. Current President Lula will face off against former President's son Flavio Bolsonaro.If current President Lula is re-elected, it is expected that he will strengthen regulatory and compliance requirements, as the central bank has intensified oversight of exchanges and may push for taxation on stablecoin transactions (which had been postponed due to the election). If former President's son Flavio Bolsonaro wins, his stance on cryptocurrency is unclear, with no record indicating that he has ever mentioned cryptocurrencies. However, he has previously defended individuals associated with the "Bitcoin Pharaoh" pyramid scheme.

The regulated operator responsible for the registration, securities custody, and settlement system of the Brazilian financial market, CSD BR, has begun to record the ownership of shares in certain investment funds under BTG Pactual, mirroring them to the public XRP Ledger. CSD BR manages registered assets exceeding 22 trillion Brazilian Reais, approximately 4 trillion US dollars. Its existing database still serves as the official record for registration, custody, and settlement, and the relevant assets have not been transferred to the XRP Ledger; fund shares will be presented in token form on the XRPL.This blockchain copy aims to allow approved banks and institutions to verify ownership changes in real-time, replacing post-reconciliation, reducing the slow and costly verification process, while retaining identity checks and regulatory controls. Anyone can read the token circulation on the XRPL, but CSD BR still controls who has the right to hold and transfer these tokens. The tokens adopt the multi-purpose token standard of the XRP Ledger, allowing issuers to restrict participants and freeze assets or revoke transactions upon regulatory or court requests, while participants still need to pass identity and anti-money laundering checks.The project starts with real fund records, distinguishing it from previous pilots that used test assets or closed networks. CSD BR was established in 2018 and is authorized by the Central Bank of Brazil and the securities regulatory authority. After becoming familiar with the mirroring system, CSD BR and Ripple plan to test the direct issuance of assets on the XRP Ledger and allow approved participants to trade, with potential targets including Brazilian real estate receivables and agricultural receivables.

According to PR Newswire, Brazilian fintech company NG.CASH has completed a strategic financing of 15 million dollars, led by Blockchain Capital. Since its establishment in 2021, the company's total financing has exceeded 65 million dollars.It is reported that NG.CASH holds two licenses issued by the Central Bank of Brazil for direct credit companies and payment institutions, and is applying for a virtual asset service provider license. Since its establishment in 2021, NG.CASH has surpassed 10 million accounts, with platform transaction volume reaching several billion dollars.

The Central Bank of Brazil issued resolutions No. 588 and No. 589, requiring virtual asset service providers (VASP) to report self-custody wallet transactions that amount to or exceed $10,000, and to strengthen anti-money laundering and counter-terrorism financing regulations.Resolution No. 588 stipulates that relevant transaction data will be submitted to the Financial Activities Control Council (COAF). This agency may compile transactions based on this data and establish a self-custody address database to record the asset status of Brazilian users holding cryptocurrencies through authorized centralized exchanges. Resolution No. 589 prohibits conducting business with virtual asset service institutions or entities operating in Brazil without authorization. The new regulations will take effect on October 1, 2026, and currently, only 5 VASPs have applied for licenses to operate in Brazil.

According to The Block, based on the seventh annual Geographies report by blockchain analysis company Chainalysis, during the 12 months ending June 30, 2026, the scale of global cryptocurrency economic activity shrank by only 1.6%, from $9.5 trillion to $9.4 trillion. During the same period, the total market capitalization of the cryptocurrency market fell by about 50%, shrinking by $2.1 trillion, marking the most severe cryptocurrency bear market since 2022. The report states that the decline in economic activity is much smaller than the decline in market capitalization.Capital flows showed divergence. Funds flowing into exchanges, DeFi protocols, and other cryptocurrency services decreased by 4.3% to $8.9 trillion; domestic P2P transfers surged by 302.9% to $228.7 billion; cross-border stablecoin flows grew by 77.5%, rising from $124.2 billion to $220.3 billion. Chainalysis noted that its cross-border statistics are somewhat conservative, as they exclude transfers where the sending and receiving countries cannot be confirmed, and pointed out that this growth comes from payments averaging about $3,000, which are far from institutional levels and more aligned with everyday use cases such as personal payments to vendors, cross-border remittances, or transferring savings.Stablecoins demonstrated better value retention during the market capitalization decline compared to other cryptocurrency assets, with global on-chain balances dropping from $860 billion in September 2025 to $440 billion in June 2026, while stablecoin balances remained between $98 billion and $109 billion during this period.

According to Ledger Insights, Brazil's securities regulator (CVM) is advancing a pilot program for distributed ledger technology (DLT) aimed at tokenized securities. This program only involves simulated trading and does not involve real securities or investors.Coordinated by the CVM Tokenization Working Group (GTT), the testing will last for 60 days and can be extended for an additional 30 days. The draft is pending approval from the board. The scope covers most of the securities lifecycle, from issuance to settlement, including stocks, bonds, receivable certificates, and investment fund shares.

Argentinian cryptocurrency exchange Lemon announced that it will cease operations in Brazil due to excessively high regulatory capital requirements. The platform will stop Lemon Card services on September 30 and will automatically close all Brazilian accounts on October 16. Lemon stated that applying for the cryptocurrency business license required by the Brazilian central bank necessitates locking in a large amount of capital, which is disproportionate to its local business scale, and therefore decided to withdraw.

The final rules from the Central Bank of Brazil for Virtual Asset Service Providers (VASP) set the minimum capital requirement based on business and risk at approximately 10.8 million to 37.2 million Brazilian Reais (approximately 2.11 million to 7.2 million US dollars), significantly higher than the 1 million to 3 million Brazilian Reais range (approximately 195,000 to 586,000 US dollars) in the consultation draft, and adds requirements for governance, internal controls, anti-money laundering, auditing, and ongoing reporting.Industry estimates suggest there are currently about 150 to 300 related companies, with around 20 to 25 meeting the conditions or willing to apply, and ultimately only about 10 may obtain licenses. Some small platforms have ended or restructured their retail operations.

According to Bitcoin.com, the cryptocurrency industry in Brazil may enter a consolidation phase due to new regulations from the central bank. The new regulations require virtual asset service providers to meet higher capital, auditing, anti-money laundering, and ongoing reporting requirements, with capital requirements for certain types of institutions reaching up to 37.2 million reais, approximately 7.2 million dollars.