On-shore VASP in Brazil
Locally-incorporated VASP that operates under full local jurisdiction, holding all required licenses and registrations.
On-shore VASP is conditionally permitted in Brazil with a local entity, subject to AML obligations and high licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- Yes
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- VASP must obtain BCB authorization under Law 14,478/2022 and comply with AML/KYC obligations
- Suspicious transaction reporting to COAF (Financial Activities Control Council)
- Travel Rule adopted — threshold: BRL 30,000 (monthly reporting threshold to Receita Federal)
- Monthly transaction reporting to Receita Federal under IN RFB 1,888 for transactions above BRL 30,000
- 15% capital gains tax on crypto transactions
- Asset segregation required for custody activities
Key Restrictions
- Must establish a local legal entity with CNPJ and a local director
- Tiered capital requirements: BRL 1M–5M (~$200K–$1M USD) depending on activity type
- If dealing in securities tokens, additional CVM registration under CVM Resolution 88/2022 is required
- Stablecoins pegged to BRL may require separate payment institution authorization from BCB
- Foreign investment consultants require mandatory CVM recognition to operate in Brazil
- Non-resident investors must be identified via Brazilian brokerage houses and custodians under CVM Rule 419
Key Risks
- CVM is actively revising Resolution 88/2022 via Consulta Pública SDM 05/2025 — regulatory requirements may change mid-application
- CVM has enforced oversight over cryptoasset securities without formal licensing rules, creating enforcement risk for borderline tokens
- Brazil has recently tightened derivatives rules and blocked prediction market platforms, signaling broader enforcement posture
- Grandfathering deadlines for existing operators extend to 2025 — ambiguity around timeline for new entrants
- Dynamic regulatory landscape — primary government references are frequently updated and superseded
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
BCB — VASP authorization, prudential supervision (designated authority since June 2023)
Law 14,478/2022 (Legal Framework for Virtual Assets) (2022) — VASP authorization and oversight
Decree 11,563/2023 (2023) — BCB designated as supervisory authority
VASP: VASP authorization from BCB under Law 14,478/2022. Tiered capital: BRL 1M-5M (~$200K-$1M USD) depending on activity. 6-12 months timeline. Grandfathering period for existing operators with deadlines extending to 2025. Must establish local entity (CNPJ) with local director.
CUSTODY: Included under VASP authorization; asset segregation required
EXCHANGE: VASP authorization from BCB; CVM registration if dealing in securities tokens. Stablecoins pegged to BRL may require payment institution authorization.
Central Bank of Brazil (BCB): Authorizes, regulates, and supervises VASPs; launched comprehensive licensing in February 2026; issued Resolutions Nos. 519, 520, 521 (November 2025) and Joint Resolution No. 14.
Securities and Exchange Commission of Brazil (CVM): Oversees cryptoassets qualifying as securities, including public offerings and tokenized assets.
Financial Activities Control Council (COAF): Handles AML reporting for suspicious activities.
Resolution CVM 88/2022 is currently under active revision by CVM via Consulta Pública SDM 05/2025, and CVM has already enforced oversight over cryptoasset securities (e.g., token offerings) without waiting for new licensing rules.
Brazil has recently tightened derivatives rules and blocked prediction market platforms, indicating a shift from static licensing toward proactive market restrictions for financial and derivatives market participants.
CVM Resolution 88/2022 (2022) — Securities token regulation
Non-resident investors are subject to CVM Rule 419 for identification via Brazilian brokerage houses and custodians.6
Securities consultancy, analysis, investment advisory, and portfolio management require prior CVM authorization, regulated by CVM Resolution 20/21.5
Travel Rule adopted — threshold: BRL 30,000 (monthly reporting threshold to Receita Federal)
Evidence fact br.tax not found (may have been renamed).
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — On-shore VASPs are permitted in Brazil but require a high-burden BCB VASP authorization under Law 14,478/2022, a local entity with CNPJ and local director, tiered capital of BRL 1M–5M, AML reporting to COAF and Receita Federal, and potentially additional CVM registration if dealing in securities tokens.
Questions this verdict aims to answer
- What license(s) are required to operate locally?
- What capital, governance, and reporting obligations apply?
- What is the application process and timeline?