Brazil Cuts Off Unlicensed Crypto Providers From Banking System
Brazil's central bank is enforcing its crypto licensing regime by cutting off unlicensed providers from the banking system. Under Resolução BCB No. 520, banks and payment institutions are prohibited from maintaining transactional relationships with virtual-asset service providers (VASPs) that have not been authorised or filed for authorisation by 30 October 2026.
The measure affects around 120 unlicensed providers, including foreign entities required to onshore within 270 days. These firms will lose access to Brazilian banking infrastructure if they miss the deadline, effectively preventing them from serving Brazilian customers through regulated financial channels.
The BCB's approach differs from other jurisdictions that rely on enforcement actions against non-compliant firms. By placing the obligation on banks and payment institutions, Brazil is creating a structural advantage that makes it harder for unlicensed providers to operate in the country.