Central Bank of Brazil publishes notice on compliance with the Legal Framework for Crypto Assets

On November 06, 2023, the Central Bank of Brazil (“BC”) published Notice No. 40,874, which relates to Article 9 of Law No. 14,478, of December 21, 2022 (“Legal Framework for Crypto Assets”), regarding the compliance by virtual asset service providers (“VASPs”) with provisions established in the Legal Framework for Crypto Assets and other normative acts to be established by the BC.

In line with market expectations, the BC confirmed plans to publish the applicable regulation establishing conditions and deadlines (of at least six months) for VASPs – including the ones that are operating on the date of the regulation’s entry into force – to adjust themselves to the requirements established in the Legal Framework for Crypto Assets and the regulation mentioned in the text.

According to the BC, the VASPs can continue to operate regardless of any prior authorization until the BC’s regulation providing for this matter enters into force.

Notice No. 40,874/2023 is available at the BC’s webpage.

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