Brazil's central bank has finalized regulations that subject cryptocurrency companies to banking-style oversight, categorizing stablecoin transactions and specific self-custody wallet transfers as foreign-exchange operations. The Banco Central do Brasil (BCB) introduced Resolutions 519, 520, and 521, establishing standards for licensed virtual-asset service providers (SPSAVs). These regulations enhance consumer protection, transparency, and Anti-Money Laundering (AML) measures for crypto brokers and custodians. Effective February 2, 2026, mandatory reporting for capital-market and cross-border operations will commence on May 4, 2026. Under these rules, transactions involving fiat-pegged virtual assets will be treated as foreign-exchange operations, subjecting them to the same scrutiny as currency trades. Licensed FX institutions and SPSAVs will manage these operations, with limits on unlicensed foreign transactions capped at $100,000. The BCB aims to improve efficiency, prevent regulatory arbitrage, and ensure stablecoin transfers are reflected in official financial data, addressing concerns over the dominance of stablecoins in Brazil's crypto market. Read more AI-generated news on: https://app.chaingpt.org/news