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The new regulations from the Central Bank of Brazil require virtual asset service providers to meet compliance requirements related to capital, auditing, anti-money laundering, and ongoing reporting, with capital requirements reaching up to 37.2 million reais, approximately 7.2 million US dollars. Currently, among about 300 related institutions, only 20 to 25 may meet the conditions to apply for authorization, and it is expected that only 10 will obtain licenses.Some small platforms have ended or restructured their retail operations, including Bitnuvem, NovaDAX, Digitra, and Coinext, but these platforms did not attribute their decisions to the new regulations. Institutions that fail to meet the requirements will also face ongoing compliance costs, and some businesses may struggle to maintain operations. Related institutions must apply for authorization by October 30, and those that do not apply will cease operations within 30 days and notify customers.Isabel Longhi, Head of Public and Regulatory Policy for Ripple Latin America, stated that market consolidation is expected to occur as the Brazilian crypto market matures, but the new regulations will limit innovation in the short term.

According to CriptoNoticias, as the Central Bank of Brazil advances the authorization system for virtual asset service providers (PSAV), local cryptocurrency trading platforms are facing regulatory reshuffling. Digitra, Coinext, and Bitso have recently adjusted their business layouts in Brazil.Among them, Digitra has ceased trading services and decided not to apply for PSAV authorization, effectively exiting the Brazilian market; Coinext announced it would orderly close its cryptocurrency trading business due to not meeting the minimum capital requirement; Bitso has chosen to redirect its Brazilian individual retail customers to Mercado Bitcoin while retaining its institutional business line.According to the regulations of the Central Bank of Brazil, existing platforms wishing to continue operating in compliance in Brazil after the deadline at the end of October must submit their PSAV authorization applications before then. This round of adjustments may indicate that the largest cryptocurrency market in Latin America is accelerating into a deep phase of compliance reshuffling.

Brazilian banks are expanding their cryptocurrency services for customers. According to Folha de S.Paulo, Brazil's largest asset management bank, Itaú, now offers 15 types of cryptocurrencies, including Bitcoin, Ethereum, and the US dollar stablecoin USDC, through its investment app. Brazil's largest fintech company, Nubank, has listed 28 types, and Banco do Brasil, the most profitable state-owned bank in Brazil, has seen transaction volumes exceed 11 million reais (approximately 2.1 million USD) since launching direct purchase services for Bitcoin and Ethereum in January of this year.However, customer cryptocurrency transactions have not entered the banks' balance sheets. A document from the central bank dated March 2026 shows that Brazilian banks hold zero virtual assets on their books. Over the past year, Itaú, Bradesco, Santander, Banco do Brasil, and Nubank have all expanded their cryptocurrency product lines, while the Brazilian cryptocurrency market has also reached record sizes. According to data from the Brazilian Federal Revenue Service, Receita Federal, Brazilians transferred 505.5 billion reais (approximately 98.7 billion USD) through cryptocurrencies in 2025, more than five times that of 2020, with corporate transactions accounting for 98.3%.This move by banks coincides with the implementation of regulations. In 2022, Brazil passed the "Virtual Asset Legal Framework," granting regulatory authority to the central bank. Three resolutions issued in November 2025 require any institution allowing customers to trade, hold, or send cryptocurrencies to obtain a license, meet minimum capital requirements, and segregate customer accounts, with a compliance deadline of October 30, 2026.

According to Ledger Insights, in March of this year, Citibank issued its first native digital structured note on Euroclear's D-FMI tokenization platform, targeting distribution channels for Citibank's wealth management business.Now, Banco do Brasil, a state-owned holding bank, has announced that it has invested $5 million to purchase subsequent notes in the same Citibank project. This Brazilian bank stated that this transaction is the first of its kind for a financial institution in Latin America. The Brazilian bank made the investment through its proprietary funds department on August 19, using its own funds for the instrument rather than investing on behalf of clients. Citigroup issued the note through its Luxembourg entity, with its London branch acting as the issuance and paying agent. The underlying reference asset of the structured note has not been disclosed.

According to data from the Central Bank of Brazil (BCB), cryptocurrency purchases in July amounted to $572 million, a decrease of nearly 80% compared to $2.6 billion in June, and a decline of nearly 60% from $1.4 billion in July 2025.Fernando Rocha, head of the statistics department at the Central Bank of Brazil, stated that the changes are part of the adaptation of cryptocurrency exchanges to the new regulatory environment for digital assets, with anti-money laundering controls and governance requirements being significant factors in the reduction of transaction volume. Since 2026, the total amount of cryptocurrency purchases in Brazil has reached $15.25 billion, more than doubling compared to $7.6 billion in the same period of 2025. BCB noted that most of the related transactions involve stablecoins.

According to BeInCrypto, the digital campaign of Brazil's "pro-Bitcoin" presidential candidate Renan Santos has been suspended, with 3.3 million reais (approximately 600,000 USD) of public campaign funds frozen and 16 campaign social media accounts restricted.Weeks before this ruling, Santos had just supported the establishment of a national Bitcoin reserve. His candidacy has not been revoked, but his online reach and funding have been severely impacted.

The Central Bank of Brazil has developed a real-time warning system for cryptocurrency threats and has collaborated with the digital asset threat protection company Hypernative to provide attack identification, response, and fund tracking support to banks and domestic cryptocurrency exchanges. In July 2025, cybercriminals exploited a software vulnerability in the financial software middleware company C&M to steal $180 million from the financial system and exchanged part of the funds for Bitcoin and USDT through exchanges.This incident has prompted the Central Bank of Brazil to accelerate the construction of related systems. Regina Pedroso, Executive Director of the Brazilian Tokenization Association, stated that the system will begin integration in the next two weeks, with Foxbit and Mercado Bitcoin participating in the implementation. Relevant agencies have completed testing and issued some warnings, and Brazil will also implement a 24-hour preventive hold on cryptocurrency transfers exceeding $10,000 per transaction or per day for individuals.

Coinbase announced that Brazilian users can now buy and sell USDC directly using Brazilian Real on the Coinbase Advanced platform. This feature reduces the intermediate steps in the trading process and lowers the cost of acquiring USDC with Brazilian Real by 85%.Coinbase stated that stablecoins are becoming an important part of the global financial system, with global stablecoin settlement volume exceeding $30 trillion by 2025, and Coinbase's annual stablecoin settlement volume approaching $1 trillion.

The stablecoin infrastructure platform Interlace has officially established an office in Brazil and formed a local team to further advance its market layout in Latin America. Interlace will provide global payment and digital asset infrastructure support for businesses by connecting local financial institutions, cross-border trade platforms, digital asset ecosystems, and Web3 project parties.In addition, Interlace recently appeared at the Blockchain.RIO exhibition in Rio de Janeiro, engaging with practitioners in the financial, payment, and digital asset sectors in Brazil and Latin America. Interlace's Country Manager for Brazil, Guilherme Santos, was invited to participate in a panel discussion on topics such as digital assets, stablecoin payments, and financial infrastructure.It is reported that Interlace will participate in the Argentina Crecimiento LATAM Digital Assets Conference from August 20 to 21, where it will deliver a speech sharing global card issuance project practices and its market layout in Latin America.

According to Catcher Predict monitoring, the "Brazil Presidential Election" event is currently among the hottest trading topics on the prediction market Polymarket, with a cumulative pool size reaching $1.255 billion. The option with the highest market consensus is "Luiz Inácio Lula da Silva," corresponding to a winning probability of about 65.5%.

According to Livecoins, the Joint Task Force Against Organized Crime in Rondônia, Brazil (FICCO/RO) executed arrest and search warrants against a gang suspected of electronic fraud and money laundering. The criminal organization is accused of using cryptocurrency exchanges to hide illegal funds transferred from the original victims' accounts.A case investigated in 2025 resulted in losses of approximately $5.74 million. The court has issued 8 preventive arrest warrants and 18 search warrants, and authorized the freezing of related assets such as cryptocurrency exchange and bank accounts. In addition to targeting securities accounts, the law also mandates the seizure of vehicles and boats belonging to the individuals under investigation.

Brazilian Bitcoin treasury company OranjeBTC (B3: OBTC3) announced the launch of the Digital Yield ETF (DIGY11), which is created in collaboration with 3R Investimentos and MarketVector, and is expected to be listed on the Brazilian Stock Exchange B3 in early September.DIGY11 will initially invest in preferred shares issued by Strategy through STRC and preferred shares issued by Strive through SATA, distributing returns to investors in Brazilian reais on a monthly basis while providing daily liquidity and currency hedging. Under current market conditions, DIGY11 is expected to provide an annualized distribution yield equivalent to CDI plus approximately 3% to 5%, but this estimate does not include fluctuations in the fund share price and does not constitute a guarantee of returns. This ETF does not directly invest in Bitcoin but provides Brazilian investors with a localized channel to access USD returns and exposure to Bitcoin ecosystem assets by holding preferred shares related to Bitcoin treasury companies.

The largest bank by asset size in Latin America, Itaú, is collaborating with OpenAssets to participate in a tokenized fixed income and investment fund test led by the industry. Brazil has become a testing ground for placing bonds, credit, and other financial assets on the blockchain under a regulatory framework.

Web3 security company CertiK released the report "Intel3D: PSAV and Brazil's New Security Standards." The article points out that as the deadline for authorization applications set by the Central Bank of Brazil (October 30 of this year) approaches, local virtual asset service providers (PSAV) are facing a round of concentrated compliance adjustments, and compliance and security certifications issued by independent third parties are transitioning from industry best practices to important requirements for market access.According to the report, CertiK is currently conducting independent external audits based on the Central Bank of Brazil's Normative Instruction No. 701. As one of the markets with the highest adoption of crypto assets globally, the impact of this regulatory transformation in Brazil may far exceed the local market. The report shows that Brazil currently ranks fifth in the world for actual crypto asset adoption rates. From June 2024 to June 2025, the on-chain asset value received by Brazil reached $318.8 billion, accounting for nearly one-third of on-chain activity in South America during the same period. Stablecoins have become an important infrastructure in the local digital asset market, accounting for about 80% of the trading volume in crypto asset transactions reported to the Federal Revenue of Brazil.

According to Livecoins, Brazil's Superior Court of Justice (STJ) rejected the release request of the suspect Luccas, maintaining his detention in São Paulo state. The case involves a large-scale fraud against the technology company C&M Software, with the suspect accused of illegally accessing the company's clearing system to steal approximately 813 million reais (about 160 million USD).The criminals dispersed the funds into nearly 300 fake bank accounts to increase tracking difficulty, and then exchanged the reais for BTC and USDT through multiple blockchains, attempting to cover up the illegal source of funds, constituting money laundering. The main attack occurred in June 2025, with the criminal organization having clearly defined roles (including transfer operators and cryptocurrency fund managers) and bribing internal company employees to assist in cracking the server passwords. The first-instance judge has ordered the arrest of the suspect and about 20 other individuals involved in the case, with the arrest warrant executed at the end of October.

According to Reuters, the Central Bank of Brazil announced new anti-fraud rules, under which some cryptocurrency transfers will be delayed for up to 24 hours. The new regulations will take effect next year and apply to transfers exceeding $10,000 sent to overseas virtual asset companies or self-custodied wallets, with the threshold calculated based on individual transactions or the total transfers of a customer in a single day.The Central Bank of Brazil stated that this move reflects the increasing use of virtual assets (including stablecoins) for the rapid transfer of funds obtained through financial fraud. The central bank emphasized that this measure is not a freezing of assets and will not permanently block transfers; it can also apply to other transactions that require stricter scrutiny.

According to market news, the Brazilian listed company OranjeBTC (OBTC3) has increased its holdings by 30 bitcoins, currently holding a total of 3948 BTC, ranking 23rd in Bitcoin 100.

According to Livecoins, Brazilian police discovered a hidden illegal Bitcoin mining operation at a recycling station during a routine inspection targeting the theft and sale of scrap metal. Approximately 15 ASIC miners and 3 servers were seized on-site, with the total value of the equipment estimated to exceed 200,000 reais (about 39,400 USD).Bitcoin mining is not illegal in Brazil itself, but these devices were illegally tapping into electricity, with local power company Cemig estimating a monthly loss of about 60,000 reais (about 11,800 USD). A 37-year-old employee of the recycling station was unable to explain the source of the equipment and did not provide an invoice, leading to his arrest on charges of theft and trafficking. The police have also filed cases against a 31-year-old man and woman responsible for the business.The police stated that they are currently investigating the flow of the mined cryptocurrency.

The Central Bank of Brazil disclosed that the purchase volume of cryptocurrency assets in Brazil reached $14.68 billion in the first half of 2026, an increase of 135% compared to $6.24 billion in the first half of 2025. The statistical scope includes transactions involving Bitcoin, Ethereum, and stablecoins processed by registered Virtual Asset Service Providers (VASP).In June, the purchase volume of cryptocurrency assets in Brazil was $2.54 billion, higher than $1.48 billion in June 2025; in May, the purchase volume of stablecoins was nearly $2.632 billion, an increase of 158% compared to May 2025. Fernando Rocha, head of the statistics department at the Central Bank of Brazil, stated that the country's cryptocurrency asset market has moved past the initial stage and is expanding while exploring application scenarios. Fernando Rocha indicated that the demand for dollar-pegged stablecoins is driving growth, with its demand share exceeding 90%, and it can be used for payments and cross-border settlements. The Central Bank of Brazil classifies VASP as Class 3, and after it takes effect in January 2027, relevant institutions will need to comply with the same requirements as securities brokers, securities distributors, and foreign exchange brokerage firms.