BCB Resolution No. 257, of November 16, 2022, changes thresholds for authorization requests by digital currency issuers whose operations initiated before March 2021

On November 16, 2022, the Central Bank of Brazil (“BCB”) published BCB Resolution No. 257 (“Resolution No. 257/2022”), which amends BCB Resolution No. 80, of March 25, 2021, which provides for the constitution and operation of payment institutions (“Resolution No. 80/2022”).

The purpose is to modify the thresholds for requesting authorization to provide digital currency issuance services, in regard to payment institutions that initiated such operations prior to March 01, 2021.

According to Resolution No. 257/2022, digital currency issuers who initiated the provision of  such services prior to March 01, 2021, without authorization from BCB, must request authorization after exceeding specific thresholds, during periods that range from January 01, 2022 to December 31, 2028.

Below we list payment transaction amounts and funds held in prepaid accounts, throughout each period:

• • From January 01, 2022 to December 31, 2024, financial transactions exceeding at least one of the following amounts:

(a) BRL 300,000,000.00 in payment transactions; or

(b) BRL 30,000,000.00 in funds held in a prepaid payment account;

• • From January 01, 2025 to December 31, 2025, financial transactions exceeding at least one of the following amounts:

(a) BRL 250,000,000.00 in payment transactions; or

(b) BRL 25,000,000.00  in funds held in a prepaid payment account;

• • From January 01, 2026 to December 31, 2026, financial transactions exceeding at least one of the following amounts:

(a) BRL 200,000,000.00 in payment transactions; or

(b) BRL 20,000,000.00  in funds held in a prepaid payment account;

• • From January 01, 2027 to December 31, 2027, financial transactions exceeding at least one of the following amounts:

(a) BRL 150,000,000.00 in payment transactions; or

(b) BRL 15,000,000.00  in funds held in a prepaid payment account;

• • From January 01, 2028 to December 31, 2028, financial transactions exceeding at least one of the following amounts:

(a) BRL 100,000,000.00 in payment transactions; or

(b) BRL 10,000,000.00  in funds held in a prepaid payment account; and

• • By March 31, 2029, in the event that the amounts provided for in items I to VI are not reached.

There was no change to the rule that establishes the requirement of authorization for digital currency issuers that reached, until December 31, 2021:

(a) BRL 500,000,000.00 in payment transactions; or

(b) BRL 50,000,000.00  in funds held in a prepaid payment account.

Additionally, there was no change to the 90-day period to request authorization to operate in the scenarios described above, or to the deadlines to evaluate the thresholds described above, as follows:

• • for payment transactions, the sum of amounts corresponding to the transactions carried out within the last 12 months; and
  • for funds kept in prepaid payment account, the arithmetic mean of the 30 largest daily digital currency balances held in such accounts within the last 12 months.

BCB Resolution No. 257/2022 will enter into force on December 01, 2022 and is available at the BCB website – Access the main menu: “Financial Stability”, “Regulation”, “Search regulation (in Portuguese only).”

Our Banking and Finance team is available to provide any further clarifications that may be necessary.