(MENAFN- Crypto Breaking) Brazil's Central Bank (BCB) published three regulatory resolutions on Monday, November 10, 2025, officially classifying all fiat-referenced stablecoin activity, including purchases, sales, exchanges, and cross-border transfers, as foreign exchange market operations.

The Resolutions BCB No 519, 520, and 521, which will take effect from February 2, 2026, state that transactions with USDT, USDC, BRL-pegged tokens, or any other stablecoin backed by fiat currency will be classified and regarded as traditional cross-border remittances or currency trades, falling under the same reporting, taxation, and anti-money laundering rules.

Following the implementation of the resolution, only BCB-authorized institutions, either traditional foreign exchange banks or the newly established Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs), will be allowed to offer these services to Brazilian residents.

Key requirements include real-time reporting of all stablecoin transactions to the Central Bank's foreign exchange monitoring system (SML), a $100,000 per-transaction limit when dealing with unlicensed foreign institutions, and compulsory KYC as well as proof of origin and destination for any transfer involving self-custody wallets that is done by a local provider.

Also, the minimum capital requirements for SPSAVs range from R$1 million to R$35 million, approximately $175,000 to $6.2 million at current rates, depending on the scale of operations.

90% of Brazil's Crypto is Stablecoins

During the press conference, BCB Director of Regulation Otávio Damaso confirmed that stablecoins already account for roughly 90% of crypto transaction volume in Brazil and are primarily used as dollar proxies for international payments.

Licensing applications for SPSAVs are expected to open in early 2026, with compulsory cross-border reporting beginning May 4, 2026. As any company operating without authorization is expected to cease its operations by November 2026.

Following the announcement, major local exchanges, including Mercado Bitcoin, Novadax, Foxbit, and Bitz have welcomed and accepted the regulatory decision, while smaller platforms and DeFi projects have flagged potential compliance costs. Analysts expect consolidation but agree the rules will dramatically increase institutional confidence in the sector.

According to the Chainalysis 2025 Global Crypto Adoption Index, Brazil received $319 billion in on-chain value between mid-2024 and mid-2025, making it one of the world's largest cryptocurrency markets.

The new resolution is expected to position Brazil among the most advanced jurisdictions globally in regulating fiat-backed stablecoins, which will effectively close the chapter on unregulated digital dollar flows that millions of citizens and companies have relied upon for years.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

MENAFN12112025008006017065ID1110331330