Brazil's central bank requires crypto service providers to undergo financial audits and tightens licensing rules.

On June 2nd, Bits.media reported that the Central Bank of Brazil has tightened licensing rules for virtual asset service providers. Effective June 1st, these providers are required to undergo independent financial audits before obtaining operating licenses. Auditors must not only assess the company's financial health but also review its compliance with anti-money laundering and counter-terrorism financing regulations. This includes verifying whether the platform segregates its own assets from customer funds, evaluating its risk management strategies, and examining employee training programs. The auditors must be registered with the Brazilian Securities and Exchange Commission. New applicants, including cryptocurrency exchanges, brokerage firms, and custody services, must adhere to these requirements from the outset of their registration process. Existing license holders will also need to complete independent audits upon license renewal. Brazil first officially regulated virtual asset services through legislation in 2022, bringing them under the purview of the central bank. A category for licensed virtual asset service providers was established in November 2025. Additionally, Brazil recently banned 28 betting and prediction market platforms, such as Polymarket and Kalshi, for non-compliance with local derivatives trading regulations. Starting October 1st, Brazilian electronic forex trading providers will be restricted from using cryptocurrencies for international remittances.