Brazil Cracks Down on Crypto: October 30 Deadline Sparks Regulatory Frenzy

The Central Bank of Brazil has set a deadline for virtual asset service provider (PSAV) licensing applications, which is October 30 this year. In its latest report, Web3 security firm CertiK notes that compliance and security certifications issued by independent third-party organizations have become a hard threshold for entering the Brazilian market.

The Brazilian market is one of the largest in South America, with an actual adoption rate of crypto assets ranking fifth globally. The total value of on-chain assets received by Brazil reached $31.88 billion between June 2024 and June 2025, accounting for nearly one-third of on-chain activities in South America during the same period.

Stablecoins dominate the Brazilian market, accounting for approximately 80% of trading volume. This means that stablecoins have become an important clearing infrastructure for the local digital asset market and even parts of the real economy.