Crypto Exchange Licensing in Brazil by Central Bank: What You Need to Know in 2025

If you're running or using a crypto exchange in Brazil, you can't afford to ignore what's happening with the Central Bank of Brazil. It’s not just about getting permission to operate-it’s about surviving. As of 2025, Brazil has moved past the wild west phase of cryptocurrency. There’s no more guessing. No more loopholes. The rules are here, and they’re strict.

There’s No Such Thing as a ‘Crypto License’-But You Still Need One

You won’t find a form called “Crypto Exchange License” on the Central Bank’s website. That’s intentional. Brazil doesn’t create separate boxes for crypto. Instead, it folds crypto businesses into its existing financial system. If you’re offering crypto trading, custody, or fiat on-ramps, you’re classified as a Virtual Asset Service Provider (VASP). And under Law No. 14.478/2022, which took effect in June 2023, all VASPs must register with the Central Bank of Brazil (BCB).

This isn’t a suggestion. It’s a legal requirement. Operating without registration can lead to fines, account freezes, or even criminal charges. The law doesn’t just say “register.” It demands full compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) rules-exactly what the Financial Action Task Force (FATF) recommends globally.

That means you need to know your customer. You need to verify identities. You need to log every transaction. And you need to report suspicious activity. No exceptions. Even small exchanges with 500 users aren’t exempt. The Central Bank doesn’t care how big you are. If you touch crypto and Brazilian reais, you’re in the system.

The $10,000 Rule That Could Break Your Business

Here’s where things get real. In September 2024, the Central Bank dropped a bombshell: proposed rules for electronic foreign exchange (eFX) platforms. At first glance, it looked like it was only about currency trading. But here’s the catch-any crypto exchange that lets users convert BTC to USD or send ETH to a foreign wallet? That’s now caught in the same net.

The new rules say: no individual can send more than $10,000 in a single transaction. Not $10,000 a day. Not $10,000 a month. One transaction. Period.

Think about that. A trader buying $15,000 worth of Bitcoin? They can’t do it in one go. They’d have to split it into two transactions-each under $10,000. An institutional investor moving $50,000? They’d need five separate transfers. And each one must be approved, documented, and reported.

Worse, every transaction must show the full cost upfront. No hidden fees. No “we’ll tell you after.” If your exchange charges 1.5% for a withdrawal, you have to display that number before the user clicks “Confirm.” No surprises. No fine print.

Industry insiders are calling this the “Brazilian liquidity trap.” High-volume traders, hedge funds, and even remittance services that rely on crypto for cross-border transfers are scrambling. Some are already moving operations to Paraguay or Colombia, where limits are higher and rules are looser.

Where Can You Deposit and Withdraw? Only Here

You can’t just link your crypto exchange to any bank account. The Central Bank requires all VASPs to use only approved financial channels for deposits and withdrawals. That means:

• Only Brazilian banks and licensed payment processors can handle fiat on-ramps
• Users can’t send money from unregulated wallets or foreign platforms
• Any transaction outside these channels will be blocked or flagged

This isn’t just about compliance-it’s about control. The Central Bank wants to see every peso that enters or leaves the crypto ecosystem. If you’re a user trying to deposit BRL from a peer-to-peer platform like Paxum or a non-approved wallet? You’re out of luck. If you’re an exchange letting users deposit via unlicensed gateways? You’re violating the law.

Some exchanges tried to work around this by partnering with fintechs that claimed to be “crypto-friendly.” Those partnerships are now under audit. The Central Bank has already shut down three platforms in 2025 for using gray-market payment processors.

The CVM Isn’t Just Watching-It’s Playing Defense

The Central Bank handles the money flow. But if your crypto asset is classified as a security? That’s the Securities and Exchange Commission of Brazil (CVM)’s job. Tokens that promise profits, dividends, or share in revenue? Those are securities. And they’re treated like stocks or bonds.

So if you’re launching a token that gives holders a cut of exchange fees? You need CVM approval. No exceptions. The CVM has already issued warnings to five DeFi projects in 2025 for selling tokens without registration. Two were forced to refund investors. One founder received a formal investigation notice.

The overlap between BCB and CVM is intentional. Brazil doesn’t want crypto to fall between cracks. If a token is money? BCB watches it. If it’s an investment? CVM watches it. If it’s both? Both watch it. And they share data.

What Happens If You’re a Foreign Exchange Serving Brazilians?

You might think, “I’m based in Singapore. I don’t have a Brazilian office. I’m safe.” You’re not.

The Central Bank doesn’t care where your servers are. If your platform allows Brazilian users to trade, deposit, or withdraw-especially in reais or USD-you’re subject to Brazilian law. The proposed forex rules make this crystal clear: any platform serving Brazilian customers must comply with the $10,000 cap, full cost transparency, and designated on-ramp rules.

Major global exchanges like Binance and Kraken have already adjusted their Brazilian operations. They now block transfers over $10,000. They’ve added mandatory disclosures. They’ve cut off unapproved payment methods. Some even require Brazilian users to complete extra KYC steps before trading.

Smaller foreign exchanges? They’re being blocked. Brazilian banks are instructed to reject transactions from unregistered platforms. If your exchange doesn’t have BCB registration, your users can’t deposit. And if they can’t deposit? They leave.

Who’s Winning? Who’s Getting Left Behind?

The big players-like Foxbit, Bitso Brazil, and Mercado Bitcoin-are adapting fast. They’ve hired compliance teams. They’ve built reporting systems that feed data directly to the Central Bank. They’ve partnered with licensed banks. They’re even lobbying for clearer guidelines.

But the small ones? The ones with five employees and a website built on WordPress? They’re struggling. The cost of compliance-software, legal fees, audits, staff training-can hit $200,000 a year. Many can’t afford it. Some have shut down. Others are going underground, operating as informal P2P networks.

The Central Bank isn’t trying to kill crypto. It’s trying to tame it. And it’s succeeding. Brazil now has one of the most comprehensive crypto regulatory frameworks in Latin America. It’s not perfect. But it’s real.

What’s Next? The Clock Is Ticking

The public consultation for the forex rules ended in November 2024. The Central Bank hasn’t announced when the final rules will take effect-but industry insiders expect them to go live by mid-2025. Once they do, there will be no grace period. No warnings. Just enforcement.

If you’re running a crypto exchange in Brazil, your next move is clear: register with the Central Bank. Build compliant on-ramps. Limit transactions to $10,000. Disclose every fee. And prepare for audits. If you’re a user? Choose only licensed platforms. Anything else puts your money-and your legal standing-at risk.

This isn’t the end of crypto in Brazil. It’s the beginning of a new era. One where legitimacy matters more than hype. Where transparency beats anonymity. And where the Central Bank doesn’t just watch the market-it controls it.