Central Bank of Brazil Crypto Policy: Rules, Restrictions, and What It Means for Users in 2025

When the Central Bank of Brazil (BCB) took control of cryptocurrency regulation in June 2023, it didn’t just add another rulebook - it rewrote the entire game for digital assets in Latin America’s biggest economy. The Central Bank of Brazil crypto policy is now one of the most detailed, strictest, and most actively enforced frameworks in the region. And if you’re trading, holding, or running a crypto service in Brazil, you need to know exactly what’s allowed - and what’s blocked.

How the Central Bank of Brazil Took Charge

Before 2023, Brazil’s crypto scene was wild west territory. Exchanges operated with little oversight. Users sent money abroad without limits. Stablecoins moved billions daily. Then came Federal Law No. 14,478/2022 - the Brazilian Virtual Assets Law (BVAL). It didn’t ban crypto. It didn’t endorse it. It put the Central Bank of Brazil in charge.

By December 2023, Decree No. 11,563/2023 gave the BCB full authority to license, monitor, and punish any company offering crypto services. That includes exchanges, wallet providers, and even crypto ATMs. You can’t legally operate a crypto platform in Brazil unless you’re registered with the Central Bank. No exceptions. No loopholes. By 2025, over 80 platforms had completed registration. Another 40 were suspended for failing compliance checks.

This wasn’t about stopping innovation. It was about bringing order. The BCB wanted to stop money laundering, protect users from scams, and stop crypto from undermining Brazil’s financial system. And they didn’t hold back.

The $10,000 Forex Cap That Changed Everything

In early 2025, the BCB dropped its heaviest restriction yet: a $10,000 annual cap on international transfers involving cryptocurrency. That means if you’re using a Brazilian exchange to send BTC, ETH, or USDT overseas, you can’t move more than $10,000 worth in a single year.

This rule hit exchanges hard. Before, Brazilian traders could easily swap BRL for USDT and send it to Binance, Kraken, or Coinbase. Now, they’re locked in. Many users tried to bypass it by splitting transfers across multiple accounts. The BCB caught them. The system now tracks wallet addresses, not just bank accounts. If your wallet sends $9,500 to one address and $800 to another in the same month, it’s flagged as a single transaction.

The result? Brazilian crypto platforms are shifting focus. They’re pushing domestic trading - BRL to BTC, BRL to ETH - and cutting back on international fiat gateways. Some exchanges now only support BRL deposits. Others have stopped offering USD or EUR withdrawals entirely. The goal? Keep money inside Brazil’s financial system.

Stablecoins: The 90% of the Market That’s Being Tamed

Here’s the irony: stablecoins make up about 90% of all crypto transactions in Brazil. Why? Because they’re the easiest way to protect savings from inflation. BRL lost 24% of its value against the dollar between 2022 and 2024. People turned to USDT and USDC like a digital savings account.

But the BCB doesn’t like stablecoins. They’re not issued by banks. They’re not backed by Brazilian reserves. And they bypass the central bank’s control over money supply. So in March 2025, the BCB introduced new rules: stablecoin issuers must now hold 100% of reserves in Brazilian government bonds or BCB-approved deposits. No offshore banks. No U.S. Treasury bills. No unverified collateral.

That killed most foreign stablecoin providers. Tether and Circle stopped servicing Brazilian users. Only two local stablecoins - BRLC and BRSD - remain compliant. And even they can’t be used for international transfers. You can hold them. You can trade them. But you can’t send them abroad. Not even $1.

The BCB says this protects financial stability. Critics say it punishes ordinary Brazilians who use stablecoins to survive inflation. Either way, the market changed overnight.

DeCripto: The Mandatory Crypto Tax Tracker

If you bought, sold, or traded crypto in Brazil in 2024, you had to report it to the tax office. But in March 2025, things got serious. The Declaração de Ativos Criptográficos - or DeCripto - became mandatory. Every crypto platform must now connect directly to the Brazilian Revenue Service (RFB) and send real-time data on every transaction.

That includes:

• Who sent or received crypto
• Exact timestamp
• Amount in BRL at time of trade
• Wallet addresses involved

Platforms like Mercado Bitcoin and Bitso now have compliance modules built into their backend. If you trade $500 in BTC on a Friday, the RFB knows by Monday. And if you don’t report your gains on your annual tax return? You’re looking at fines up to 75% of the unreported profit - plus possible criminal charges for tax evasion.

The BCB doesn’t care if you made a profit or a loss. They care that you reported it. And they’re not bluffing. In 2024, over 12,000 crypto-related tax audits were opened. In 2025, that number doubled.

The Regulatory Sandbox and DREX: Innovation With a Leash

Not all of the BCB’s moves are about restrictions. In 2024, they launched a regulatory sandbox - a controlled testing zone where fintechs can try new crypto products under supervision.

So far, three projects have passed:

• A tokenized savings account that pays interest in BRL but uses blockchain for transparency
• A peer-to-peer lending platform that uses crypto as collateral (but only for Brazilian residents)
• A digital bond system that lets small businesses raise money through tokenized securities

These aren’t just experiments. They’re the foundation of something bigger: DREX.

DREX is the Central Bank’s distributed ledger platform. It’s not a CBDC. It’s not Bitcoin. It’s a secure, blockchain-based system for banks to issue tokenized deposits, loans, and government bonds - all in real time. Think of it as a private, permissioned blockchain for Brazil’s financial institutions.

Right now, DREX only works between big banks. But by 2026, the BCB plans to let licensed crypto exchanges connect to it. That could mean instant BRL settlements on crypto trades - no more waiting 2-3 days for bank transfers.

The message? The BCB isn’t fighting crypto. It’s absorbing it.

Who’s Watching? The Other Players

The BCB doesn’t work alone. Three other agencies are part of the crypto enforcement team:

• CVM (Securities Commission): If your crypto token acts like a stock - promising profits based on someone else’s work - it’s a security. And CVM regulates it. They’re preparing rules for tokenized stocks and funds by late 2025.
• COAF (Financial Intelligence Unit): Every crypto transaction over R$10,000 must be reported if it looks suspicious. That includes rapid transfers between wallets, fake KYC documents, or trading patterns that match money laundering.
• RFB (Tax Authority): They’ve already flagged over 400,000 crypto wallets for audit. If you didn’t pay capital gains tax, you’re on their list.

You can’t dodge this system. The agencies share data. If COAF flags you, RFB gets notified. If CVM says your token is a security, the BCB shuts down the platform. It’s a three-layer net.

What This Means for You

If you’re a regular user in Brazil:

• You can still buy and sell crypto - but only with BRL.
• You can’t send crypto abroad unless it’s under $10,000 per year.
• You can’t use foreign stablecoins anymore - only local ones, and they’re useless outside Brazil.
• You must report every trade to the tax office.
• Using unregistered exchanges? Risky. They can be shut down tomorrow.

If you’re a business:

• You need BCB registration - no exceptions.
• You need real-time AML/KYC systems.
• You need to integrate with DeCripto.
• You need to hold stablecoin reserves in Brazilian government bonds.
• Compliance costs can hit $500,000+ for a mid-sized exchange.

The good news? Brazil’s crypto market is growing. Over 18 million Brazilians now hold crypto legally. Institutional investors are pouring in. The BCB’s rules are clear. And for the first time, you know exactly where you stand.

What’s Next?

The BCB’s 2025-2026 agenda has three big items:

1. Final rules for stablecoin issuance - expected by November 2025.
2. Expanded DREX access to licensed crypto platforms - pilot starts Q1 2026.
3. Rules for tokenized real estate and commodities - consultation opens in December 2025.

Brazil isn’t shutting crypto down. It’s building a wall around it - and inviting only those who play by its rules inside.

Final Thoughts

The Central Bank of Brazil’s crypto policy isn’t about fear. It’s about control. They want digital assets to serve the economy - not bypass it. The $10,000 cap, the stablecoin crackdown, the real-time tax tracking - all of it points to one goal: keep crypto inside Brazil’s financial system, under their watch.

It’s not perfect. It’s expensive. It’s complicated. But it’s working. Brazil now has the most organized crypto market in Latin America. And for users who follow the rules, it’s never been safer - or more regulated - to hold digital assets.