Cryptocurrency Regulations in Brazil

In this blog post, we’ll be talking about Brazil and the country’s relationship with crypto. Brazil is a crypto-friendly country as of 2025. The Brazilian government is currently allowing the legal use and trading of crypto. The use and trading should be formally regulated by regulatory bodies, of course. Cryptocurrencies aren’t considered legal tender in Brazil. This means that the crypto asset can’t replace the local currency, the Brazilian real (BRL) in payments. Cryptocurrencies, however, are still counted as financial assets in Brazil. According to figures offered by the Brazilian IRS equivalent, crypto transaction volumes grew 24.2% compared to last year, reaching over $43.5 billion between January and September 2024. 

Is Cryptocurrency Legal in Brazil in 2025?

Legal Status of Cryptocurrency

For those looking to enter the crypto world in Brazil, the legal status of cryptocurrency is important. Yes, crypto is fully legal Brazil in 2025. Digital assets are counted as financial assets; this means that these assets can be traded, used as investment, and are subject to regulated frameworks. Cryptocurrencies are legally recognised which means anti-money laundering (AML) regulations, taxation rules, and compliance obligations set forth by the Brazilian regulatory bodies. One important thing to remind our readers is that only the Central Bank of Brazil can issue official currency. This means that cryptocurrency can’t do it instead. 

The Central Bank of Brazil has started developing a digital alternative to it Brazilian real. This currency is known as Drex and a pilot program was done in late 2024 for the implementation of it. 

Trading and Payment Usage of Cryptocurrency in Brazil

Cryptocurrency Trading in Brazil

Trading using cryptocurrency is a hot topic for our readers. In 2025, crypto trading is legal and regulated, as we’ve mentioned above. With these actions, regulations follow suit. AML compliance is really important in Brazil. One example for compliance we can give is that firms must be registered with the Central Bank and the CVM to safely operate while crypto trading. Transaction monitoring and identity verification is equally of importance. In July 2025, the Brazilian law enforcement, led by the Civil Police of Goiás (PCGO), dismantled a sophisticated criminal syndicate that laundered over R$164 million (approximately USD 32 million) through cryptocurrency.  This acts as an example of what might happen if your company isn’t reaching AML compliance.

Our Sanction Scanner experts predict that the cryptocurrency market in Brazil will reach a projected revenue of US$ 353.5 million by 2030. A compound annual growth rate of 16.5% is expected of Brazil cryptocurrency market from 2025 to 2030. 

Cryptocurrency as a Payment Method

You can’t use cryptocurrency as an official payment method. The Brazilian real is counted as the legal tender and individuals act accordingly. But there are, of course, exceptions to this trade. Merchants and service providers accept cryptocurrency as a payment. Sectors like e-commerce, travel, sometimes restaurants accept Bitcoin, stablecoins or similar digital assets as payment using payment processors and wallet integrations. It’s not really popular yet but these usages show that this way of payment will be gaining popularity in the following years.

Who Regulates Cryptocurrency in Brazil?

There are two main characters when it comes to cryptocurrency. The first regulatory body we’ll mention is the Central Bank of Brazil (BCB). The BCB is tasked with digital asset monitoring and thinks of ways for innovation when it comes to crypto. The overall effect of crypto is watched closely by the BCB. Another regualtory body your company will need to abide by is the Brazilian Securities and Exchange Commission (CVM). The CVM deals with ICOs and invesments contracts since they are counted as securities. The monitoring of these crypto investments help you and your company feel safer and creates market transparency. 

How Is Cryptocurrency Taxed in Brazil?

Cryptocurrency is tasked according to the capital gains tax in Brazil. This is a serious issue for Brazil since it regards crypto taxation with extra care. Profits from the crypto trades you’re completing are taxed from 15% to 22.5%. The rate depends on the gains you’re acquiring. But your obligations doesn’t stop there. People and firms who deal with crypto have a responsibility of compliance. 

The reporting obligations to the Receita Federal do Brasil, which is Brazil’s tax authority, is one of the compliance requirements. If you’ve completed crypto transactions that translate to more than BRL 35,000 per month, you should be reporting accordingly. The reporting must be done even if you don’t owe any taxes. The most important rule our Sanction Scanner team would like to remind you is your losses from crpypto trading isn’t counted as an offset for other taxable income. Recordkeeping is really important for this reason.

In 2025, over 90% of crypto transactions involve stablecoins, used primarily for payments and settlement.  Brazil's central bank chief Roberto Campos Neto said in 2024 that stablecoins and asset tokenization should be regulated in the country next year since these numbers are hard to ignore. 

Are Crypto Exchanges Regulated in Brazil?

You might be wondering about the regulations set forth for crypto firms in Brazil. Firms are, of course, regulated according to crypto related regulations that were decided. All Virtual Asset Service Providers (VASPs) are required to register with the authorities of Brazil. Some requirements are KYC, AML, and reporting to the Financial Activities Control Council (COAF) which are there to keep both your company and the market safe and transparent. 

We’ll be mentioning some of the most important obligations for compliance to help our readers. KYC verification is one of the most important rules you should follow. The details of transactions and identity details of the individuals involved in the transactions help companies immensely. Transaction monitoring is also recommended. The monitoring is there to help fight money laundering and reach compliance. The scenario where your company isn’t following compliance rules doesn’t end well. Non-compliance will end up with fines, or even suspension of licenses. 

The Role of COAF in Crypto AML Compliance

Crypto activities are overseen by the Financial Activities Control Council (COAF). This regulatory body helps companies reach AML compliance. One of the duties of COAF is suspicious transaction monitoring. This act will help by detecting suspicious or high-risk activities and starting an investigation for it. Another duty COAF fulfills is that it controls the creation of risk-based client profiles. A risk based approach is always helpful for companies who are looking to save time and resources. With this technique, your compliance team can spend more time on high-risk customers while also not spending needless time on low-risk ones. COAF is also tasked with ensuring Brazil is in compliance with the Financial Action Task Force (FATF) obligations. Otherwise, the consequences will be serious for the country with it even going as far as getting blacklisted. 

How Can Crypto Firms in Brazil Stay Compliant?

Proactive Steps Firms Can Take

So, what do you need to do to stay in compliance? Our Sanction Scanner experts are here to lead you towards compliance this these important steps. Your company should invest in an AML monitoring software which tracks transactions and then flags the suspicious time in real-time. Strong KYC processes are also really important. These processes make sure that the customer you’re working with is verified and their risk profiles are created accordingly. Since compliance is a delicate and important issue for your company, your employees should also be ready to work with their expertise. Training if your team isn’t educated on AML compliance and more is recommended by Sanction Scanner experts. The final step we’ll recommend is working with legal and regulatory experts. Taking information and getting help from these experts will completely protect your company from getting in trouble since you will be fully in compliance with the ever-changing laws and regulations thanks to them.