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Brazil’s Banks Barred From Dealing With Unauthorised Crypto…

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September 18, 2026
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Brazilian banks and payment institutions will be prohibited from facilitating transactions for unauthorised cryptocurrency businesses from 30 October 2026, as the country approaches a major enforcement deadline under its new digital-asset regulatory regime.

Article 91 of Banco Central do Brasil Resolution 520 prohibits financial institutions, payment institutions and other entities supervised by the central bank from carrying out or facilitating virtual-asset operations involving crypto service providers that are neither authorised nor undergoing the authorisation process in Brazil.

The restriction is considerably broader than simply preventing banks from sending money to unlicensed exchanges. It expressly covers crypto trading, intermediation and custody, foreign-exchange transactions, opening and maintaining payment accounts and processing payments when those services facilitate activity for an unauthorised crypto provider.

That makes October 30 an important dividing line for crypto businesses already serving the Brazilian market.

Filing an Application Keeps Firms Inside the System

Brazil’s new framework took effect on 2 February 2026, implementing the country’s 2022 Virtual Assets Law and bringing crypto service providers directly under central-bank supervision.

Existing companies were given a transition period in which to seek authorisation. Banco Central rules require firms already providing covered virtual-asset services when Resolution 520 entered into force to apply within 270 days, placing the deadline on October 30.

Crucially, companies do not need to have received final approval by that date.

Article 91 specifically exempts counterparties that are already “in the process of authorisation.” A crypto company that files a valid application before the deadline can therefore remain connected to regulated financial institutions while Banco Central evaluates its request.

A provider that neither obtains authorisation nor enters the application process faces a much more serious consequence: regulated Brazilian institutions can no longer provide the financial infrastructure necessary to facilitate its crypto operations.

The regime recognizes three categories of regulated virtual-asset service companies: intermediaries, custodians and brokers, with the permitted activities varying by licence type.

Brazil Builds a Bank-Level Enforcement Perimeter

The October deadline demonstrates how Brazil is enforcing crypto regulation through both crypto companies themselves and the conventional financial institutions supporting them.

Instead of relying exclusively on enforcement actions against an unauthorised exchange, Resolution 520 obliges banks and payment companies to police their own counterparties. Maintaining payment accounts or processing transactions for an out-of-perimeter provider can itself breach the central bank’s rules after October 30.

Brazil has continued building additional requirements around the framework. Crypto service providers are being incorporated into the central bank’s prudential, internal-control and reporting architecture, while Resolution 580 classifies regulated virtual-asset service providers as Type 3 institutions for prudential purposes, with relevant requirements applying from January 2027.

Separate anti-fraud rules taking effect in 2027 will permit precautionary holds of up to 24 hours on certain crypto transfers above $10,000 to foreign providers or self-hosted wallets.

The immediate deadline, however, is October 30. From that date, merely continuing to operate in Brazil will no longer be enough for a crypto platform to retain ordinary access to the regulated financial system. It must either hold Banco Central authorisation or have formally entered the approval process — effectively making regulatory status a prerequisite for maintaining banking and payments connectivity in one of Latin America’s largest cryptocurrency markets.

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