Brazil Banks Must Cut Off Unlicensed Crypto Firms Oct 30

Brazilian banks and payment institutions will be prohibited from facilitating transactions for unauthorised cryptocurrency businesses from 30 October 2026. This date marks the end of the transition period for firms operating under the new digital-asset regulatory regime.

Article 91 of Banco Central do Brasil Resolution 520 mandates this restriction. It applies to all entities supervised by the central bank. The rule covers trading, intermediation, custody, and payment processing.

Broad Scope of New Restrictions

The restriction extends beyond simple money transfers. It expressly covers foreign-exchange transactions and the maintenance of payment accounts. Any service that facilitates activity for an unauthorised provider falls under the ban.

This makes October 30 a critical dividing line for crypto businesses serving the Brazilian market. Firms must demonstrate regulatory status to maintain access to the financial system.

Application Process Offers Temporary Shield

Brazil’s new framework took effect on 2 February 2026. Existing companies were given 270 days to seek authorisation. Firms do not need final approval by the deadline to remain compliant.

Article 91 exempts counterparties already in the authorisation process. A valid application filed before the deadline allows continued connectivity. This provision ensures firms remain inside the regulated system during evaluation.

Enforcement Through Financial Infrastructure

Resolution 520 obliges banks and payment companies to police their own counterparties. Maintaining accounts for out-of-perimeter providers becomes a breach of central bank rules. This approach shifts enforcement responsibility to conventional financial institutions.

According to GN auto markets/crypto: digital asset, this strategy builds a bank-level enforcement perimeter. It integrates crypto providers into the central bank’s prudential and reporting architecture. Additional anti-fraud rules will take effect in 2027.