After discussion, there's a possibility that Brazil may loosen restrictions on self-hosted digital currencies, known as stablecoins.
As of mid-2025, Brazil is actively developing a comprehensive regulatory framework for cryptocurrencies, including stablecoins used in cross-border payments. The key legal foundation is the Brazilian Virtual Assets Law (BVAL, Law no. 14,478/22), effective since June 2023, which defines and regulates virtual asset service providers (VASPs) and digital asset service providers (DASPs). These providers must register and operate under Central Bank of Brazil (BCB) authorization.
Cross-Border Stablecoin Payments in Focus
Brazil is seeing increased institutional use of stablecoins for cross-border transfers, driven by high costs and volatility of traditional systems, with Latin America as a regional leader in adoption (71% of institutions using stablecoins for such payments).
In response, the Central Bank is finalizing detailed regulations and licensing for crypto businesses in 2025, which will include mandates on transparency, anti-money laundering (AML), know-your-customer (KYC) compliance, cybersecurity standards, and consumer protections to reduce fraud and tax evasion risks.
While Brazil has not yet issued specific rules targeting stablecoins alone, the regulatory scope under BVAL and the ongoing legislative process aims to incorporate stablecoin operations within the broader crypto framework, ensuring legal clarity and market stability.
Ensuring a Safer Environment
Additionally, the launch of crypto custody services such as BitGo Brasil supports secure infrastructure aligned with upcoming local regulations, indicating readiness for institutional-grade crypto operations, including cross-border stablecoin transactions.
In summary, Brazil in 2025 is advancing toward more structured regulation with licensing and compliance rules for stablecoin-related cross-border payments, emphasizing transparency, AML/KYC, and consumer protection, while still finalizing detailed operational rules expected later in the year. This should foster a safer, more stable environment for stablecoin payments across borders in Brazil’s growing crypto ecosystem.
References
- Brazil's Central Bank to Regulate Cryptocurrencies with New Law
- Brazil Central Bank Considers Stablecoin Transactions as Foreign Exchange
- Brazil Central Bank's Deputy Governor Expresses Concerns Over Stablecoin Transfers
- BitGo Launches Crypto Custody Services in Brazil
- The Central Bank's upcoming regulations for crypto businesses in 2025 will mandate transparency, anti-money laundering, know-your-customer compliance, cybersecurity standards, and consumer protections for stablecoin operations, aiming to reduce fraud and tax evasion risks in cross-border paymenst.
- The BrazilianVirtual Assets Law (BVAL, Law no. 14,478/22) has defined and regulated stablecoins used in cross-border payments, ensuring they operate under Central Bank of Brazil (BCB) authorization and within a comprehensive regulatory framework.
- As institutions increasingly leverage stablecoins for cross-border transfers due to high costs and volatility of traditional systems, the growth of this technology in Brazil's crypto ecosystem will be further supported by the launch of secure infrastructure services like BitGo Brasil, which adheres to upcoming local regulations.
