Cryptocurrency Regulations and Laws in Brazil
Discover Brazil’s cryptocurrency laws. Learn about the Virtual Assets Act, required VASP licensing, the new flat 17.5 % crypto tax, AML standards, and ongoing stablecoin regulation under the Central Bank.
Brazil has taken major steps toward regulating cryptocurrencies, classifying them as virtual assets and introducing the Virtual Assets Act (BVAL). Regulations target service providers, taxation, AML compliance, and forthcoming stablecoin oversight.
Summary
Cryptocurrencies are legal in Brazil but not legal tender. They are recognized as virtual assets under Law No. 14,478/2022 (the Virtual Assets Act), which establishes prior authorization and AML standards for service providers. A flat 17.5 % tax on capital gains, covering DeFi, NFTs, and offshore wallets, was introduced in June 2025.
Legal Status
- General Use: Legal (not legal tender)
- Trading: Legal and regulated—only via authorized VASPs
- Exchanges & Custody: Must comply with BVAL and await central bank licensing guidelines
- Mining: Legal, but unregulated
- ICOs & Tokens: May fall under CVM securities regulation
- Stablecoins: Regulation proposed under the Virtual Assets Act
- NFTs & DeFi: Fully taxed; included under capital gains law
Taxation
The Federal Revenue Service treats crypto as a taxable asset. In June 2025, Provisional Measure 1303 established:
- Capital Gains Tax: 17.5 % flat on all crypto gains—no exemption threshold :contentReference[oaicite:3]{index=3}
- Income Tax: Applies to activities like mining, staking, lending
- Reporting Requirements: Quarterly reporting; losses can be carried over up to five quarters
Regulatory Bodies
- Central Bank of Brazil (BCB): Leads regulation and draft rulemaking for VASPs
- CVM (Brazilian Securities Commission): Oversees potential security-like tokens
- Federal Revenue Service (RFB): Enforces tax compliance
- COAF: Receives AML suspicious-transaction reports per best practices
Key Regulations & Laws
- 2022 Virtual Assets Act (Law No. 14,478): Legal framework for asset providers; took effect June 2023
- 2023–25 BCB Consultations: Draft VASP regulation, custody guidelines, stablecoin provisions expected by end of 2025
- 2025 Tax Reform (MP 1303): Introduced flat 17.5 % tax on all gains and expanded tax base to NFTs, DeFi, offshore storage
Timeline of Regulatory Milestones
| Year | Event | Description |
|---|---|---|
| 2022 | Virtual Assets Act passed | Legal framework defined; BCB to oversee :contentReference[oaicite:9]{index=9} |
| 2023 | BVAL goes into force | BCB begins consulting on VASP rules |
| 2024 | Consultations on stablecoins | BCB drafts stablecoin/DeFi guidelines |
| Jun 2025 | Flat 17.5 % crypto tax | MP 1303 eliminates exemptions |
Resources
- Central Bank of Brazil (BCB)
- Receita Federal (RFB)
- CVM – Brazilian Securities Commission
- COAF – AML authority
Notes
- Travel Tip: Crypto is legal for investment, but Brazil does not accept crypto as currency.
- Local Trends: 90 %+ of crypto flows occur via stablecoins; remittances and DeFi are popular.
- Language: Official documents in Portuguese; summaries may be available in English.