Remote VASP serving residents in Brazil
Foreign-incorporated entity that offers exchange, custody, or transfer services to residents of a jurisdiction without establishing a local entity or office.
Remote 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 authorization from BCB under Law 14,478/2022 with AML/CTF program required
- Registration with COAF (Financial Activities Control Council) for suspicious activity reporting
- Travel Rule compliance — threshold: BRL 30,000 monthly reporting to Receita Federal
- Mandatory KYC/CDD obligations under BCB supervision
- Asset segregation requirement for custody operations
- Ongoing prudential supervision by BCB
Key Restrictions
- Must establish a local legal entity (CNPJ) with a local director — no pure cross-border remote operation without presence
- VASP authorization requires tiered capital of BRL 1M–5M (~$200K–$1M USD) depending on activity
- Stablecoins pegged to BRL may require payment institution authorization in addition to VASP license
- Securities tokens trigger dual regulation under CVM Resolution 88/2022 and require separate CVM registration
- Grandfathering period for existing operators has deadlines extending to 2025; after that, unlicensed operation is illegal
Key Risks
- Enforcement risk for unlicensed remote operators: Binance-style enforcement actions likely — BCB has been actively supervising since June 2023 and issuing regulations through 2025–2026
- CVM has tightened derivatives rules and blocked prediction market platforms, signaling proactive enforcement against unregistered cross-border crypto services
- Grandfathering period expiration in 2025 exposes operators who delay licensing to enforcement
- Regulatory landscape is highly dynamic — primary laws (Law 14,478/2022, Decree 11,563/2023) supplemented by rapidly evolving BCB and CVM resolutions through 2025–2026
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.
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.
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.
CVM Resolution 88/2022 (2022) — Securities token regulation
Travel Rule adopted — threshold: BRL 30,000 (monthly reporting threshold to Receita Federal)
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 — a remote VASP cannot serve Brazilian residents from abroad without establishing a local entity (CNPJ) with a local director and obtaining VASP authorization from BCB under Law 14,478/2022, requiring tiered capital of BRL 1M–5M and comprehensive AML/CTF compliance including Travel Rule reporting at BRL 30,000 threshold.
Questions this verdict aims to answer
- May a non-resident provider serve residents from abroad?
- Does cross-border service trigger licensing, registration, or AML obligations?
- What enforcement risk exists for unlicensed remote operators?