color: var(color-red-500)

by

New Rules for Crypto in Brazil: Central Bank Demands Strict Independent Audits for VASPs

A new rule, outlined in Normative Instruction No. 739 released on Friday, requires Virtual Asset Service Providers (VASPs) to be audited by an authorized company before they can legally operate in Brazil. This adds another layer of complexity to an already challenging licensing process.

  • Key Takeaways:

  • Central Bank of Brazil issued Instruction 739, forcing VASPs to get independent audits to secure licenses.
  • Audits must ensure that each VASP is prepared to combat and prevent crypto-linked crime.
  • Following the $5B Hidden Flow case, Brazil’s new rules will next tighten oversight to avoid crypto laundering.

Central Bank Of Brazil Moves to Add Audit Requirement for VASPs

Brazil’s central bank has added a new step for companies wanting to offer virtual asset services, like cryptocurrency trading, within the country.

Under Normative Instruction No. 739, issued on Friday, the bank now requires VASPs to present an independent audit from an entity registered with the Brazilian Securities and Exchange Commission (CVM) to issue operational licenses.

These audits, often called “reasonable assurance reports,” need to show how well a VASP follows the law. This includes checking its policies, how it’s organized, and whether employees are properly trained. They also need to assess how the company identifies and manages the risk of its services being used for money laundering or funding terrorism, and confirm that the company has procedures for verifying customer identities.

This report will also evaluate how well the reviewed VASP identifies and tracks potentially illegal activities like money laundering, terrorism financing, and the funding of weapons of mass destruction. It will also check their ability to detect and analyze fraud and scams, and to properly freeze assets when required.

The bank stated that these measures aim to “increase the security of decisions in authorization processes, while reinforcing the country’s alignment with international practices and standards for combating these crimes.” It also reinforced that “verification by independent audit contributes to greater transparency and reliability in the controls adopted by companies in the sector.”

These actions follow Operation Hidden Flow, an investigation into six financial technology companies that were moving over $5 billion in suspicious transactions. The operation revealed that digital assets were being used to launder money.

The Primeiro Comando da Capital, a drug trafficking organization recently designated by the Trump Administration as Specially Designated Global Terrorists (SDGT), is suspected to be behind these operations.

Read More

2026-05-31 01:58