The Central Bank of Brazil issued Resolution 580/2026 on Wednesday, reclassifying virtual asset service providers (VASPs) and VASP-led conglomerates as Type 3 institutions, a category previously reserved for securities brokerage firms, securities distribution firms, and foreign exchange brokerage firms. The resolution amends Resolutions 436/2024 and 201/2022, subjecting crypto firms to the same prudential requirements—including risk management rules, capital requirements, and information disclosure policies—that apply to traditional brokerages, with compliance obligations taking effect January 1, 2027. The Central Bank stated the reclassification reflects functional similarities between VASPs and brokerage business models and aligns with international recommendations following the "same activity, same risk, same regulation" principle, advancing a safe and proportionate regulatory environment for virtual asset activities in Brazil.
Central Bank Issues Resolution 580/2026 Classifying VASPs as Type 3 Institutions
Resolution 580/2026 places VASPs in the Type 3 classification starting January 1, 2027, applying a set of prudential requirements to these institutions. According to a statement issued by the Central Bank, the Type 3 classification "brings the regulatory treatment of these companies closer to that adopted for brokerage and securities distribution firms, reflecting functional similarities between their business models." The resolution mandates that VASPs comply with risk management rules, capital requirements, and information disclosure policies identical to those governing securities brokerages.
VASPs Required to Enter Segment 4 by June 30, 2028
The resolution requires VASPs to join Segment 4 regardless of size by June 30, 2028. Segment 4 groups institutions whose size is less than 0.1% of Brazil's Gross Domestic Product (GDP). The resolution prevents VASPs from receiving Segment 5 benefits, which include a simplified compliance regime for low-risk-profile institutions. The Central Bank confirmed that VASPs will lose access to these low-risk perks as monitoring scales up.
Industry Executives Anticipate Consolidation Under New Rules
Valor Económico reported that the measure was not well received by crypto industry executives, who anticipate more consolidation in the ecosystem. An unidentified executive commented: "It doesn't seem to make much sense in terms of 'same risk, same regulation'. The positive thing is that it only comes into effect in 2027, so we have time to adjust." The executive's statement indicates industry concerns about compliance costs and the regulatory burden imposed by the Type 3 classification.
FAQ
What did Brazil's Central Bank do on Wednesday regarding VASPs?
The Central Bank of Brazil issued Resolution 580/2026 on Wednesday, reclassifying VASPs and VASP-led conglomerates as Type 3 institutions, subjecting them to the same prudential requirements as securities brokerage firms starting January 1, 2027.
Why did the Central Bank reclassify VASPs as Type 3 institutions?
The Central Bank stated the reclassification reflects functional similarities between VASPs and brokerage business models and aligns with international recommendations following the "same activity, same risk, same regulation" principle.
When must VASPs enter Segment 4 under the new resolution?
VASPs must enter Segment 4 regardless of size by June 30, 2028, and will no longer receive Segment 5 benefits, which include a simplified compliance regime for low-risk-profile institutions.
