Regulation· Regulation & supervision

Brazil central bank bars banks and payment institutions from crypto dealings with unauthorised providers from 6 November 2026

Resolution BCB 589 of 23 September 2026, published in the Diário Oficial on 25 September, amends Resolution BCB 520 of 10 November 2025 on virtual asset service providers.

Cover: generative artwork from topic and jurisdiction.Primary source: Banco Central do Brasil (bcb.gov.br)

cryptobanking.news Editorial · AI-assisted, source-verified23 September 2026T1RegulatorLatAm

Key takeawaysFact

1Resolution BCB 589 of 23 September 2026, published in the Diário Oficial on 25 September, amends Resolution BCB 520 of 10 November 2025 on virtual asset service providers.
2From 6 November 2026, financial institutions, payment institutions and other BCB-authorised institutions may not carry out or enable virtual-asset market operations whose counterparties are virtual asset service providers not authorised to operate in Brazil by the BCB, except in forms the resolution expressly allows.
3From 1 January 2027, providers that have filed for authorisation and eligible already-authorised institutions must also send the BCB data on client balances, custodied virtual assets and verifiable proof-of-reserves statements, plus staking totals where they offer staking.

Regulation
Custody

Executive summaryFact

Resolution BCB 589 of 23 September 2026, published in the Diário Oficial on 25 September, amends Resolution BCB 520 of 10 November 2025 on virtual asset service providers. From 6 November 2026, financial institutions, payment institutions and other BCB-authorised institutions may not carry out or enable virtual-asset market operations whose counterparties are virtual asset service providers not authorised to operate in Brazil by the BCB, except in forms the resolution expressly allows. From 1 January 2027, providers that have filed for authorisation and eligible already-authorised institutions must also send the BCB data on client balances, custodied virtual assets and verifiable proof-of-reserves statements, plus staking totals where they offer staking. (Source text in Portuguese; summary translated.)

Primary source: Banco Central do Brasil ↗

É vedado, a partir de 6 de novembro de 2026, às instituições financeiras, às instituições de pagamento e às demais instituições autorizadas a funcionar pelo Banco Central do Brasil realizar ou viabilizar operações no mercado de ativos virtuais que tenham como contrapartes instituições ou entidades que prestem serviços de ativos virtuais e não estejam autorizadas a funcionar no país por essa Autarquia, exceto nas formas expressamente autorizadas nesta Resolução.

— Banco Central do Brasil, verbatimString-matched against the live page 2026-10-31

Key factsFact

Event: Final rule
Jurisdiction: LatAm
Source: Banco Central do Brasil
Source tier: Tier 1 · Regulator / central bank
Regulation: Resolution BCB 520 (virtual asset service providers)

Who is affectedFact

Financial institutions, payment institutions and other institutions authorised by the Banco Central do Brasil, and virtual asset service providers (including those that have applied for authorisation) operating in Brazil.

Key datesFact

10 Nov 2025Resolution BCB 520 on virtual asset service providers
23 Sept 2026Resolution BCB 589 adopted
25 Sept 2026Published in the Diário Oficial da União
1 Oct 2026Amendment to Art. 91 of Resolution BCB 520 takes effect
6 Nov 2026Ban on operations with unauthorised virtual asset service providers applies
1 Jan 2027New reporting provisions (balances, custody, proof of reserves, staking) take effect

On the regulatory timeline

More from the sourceFact

“Esta Resolução entra em vigor: I - em 1º de outubro de 2026, em relação às alterações promovidas no art. 91 da Resolução BCB nº 520, de 10 de novembro de 2025; e II - em 1º de janeiro de 2027, em relação aos demais dispositivos.”
Effective dates (Art. 2). Our translation: “This Resolution enters into force: I - on 1 October 2026, for the amendments to Art. 91 of Resolution BCB 520 of 10 November 2025; and II - on 1 January 2027, for the other provisions.”

Verbatim from Banco Central do Brasil✓ string-matched against the live page 2026-10-31

Why it matters for banksAnalysis

Brazilian banks and payment institutions that route client crypto or stablecoin flows through outside providers need to confirm each counterparty's BCB authorisation before 6 November 2026, and those offering custody must prepare proof-of-reserves and custody reporting for 1 January 2027.

Counterparty control: from 6 November 2026 a bank or payment institution may not carry out or enable virtual-asset operations with providers that lack BCB authorisation, except in the forms the resolution allows.
Reporting build: from 1 January 2027 providers must send client balance and custody data and verifiable proof-of-reserves statements, with staking totals where relevant.
Details pending: the BCB will define the reporting format and conditions in specific regulation.

Editorial analysis based on the facts above and the sources below; not legal or investment advice.

What to watch next

6 November 2026: ban on operations with unauthorised providers applies.
BCB regulation setting the format for the new reporting.
1 January 2027: reporting provisions take effect.

What remains uncertain

The BCB says it will set the form and other conditions for sending the new balance, custody, proof-of-reserves and staking information in separate regulation.

Sources and evidence

PrimaryBanco Central do Brasil ↗2026-09-23quote matched 2026-10-31

Evidence types: how we classify sources.

Evidence

Confidence: High Primary source (regulator / official record); quote string-matched against the live page.
Quote verified: 2026-10-31 16:48 UTC
Archived snapshot: SHA-256 7e5045951a41e449… · fetched 2026-10-31
Source type: Primary Banco Central do Brasil ↗

Change log (2)

2026-10-31 Verify run + data (2026-10-31 afternoon deploy): verifiedAt refresh on all items, verify snapshots, tracker source verifiedAt, history snapshot 2026-10-31, metr (59ae13f)
2026-10-31 Newsroom 2026-10-31 afternoon: ECB selects two digital euro network service providers (ecb.europa.eu, 30 Oct; Nexi/Deutsche Telekom and Telefónica/Indra groupin (ee894cb)

Full evidence record · How we label confidence

AIAI-assisted: summary and analysis were drafted with AI from the primary source and are the editor’s responsibility. AI-drafted from the primary source; quote string-matched by scripts/verify.mjs. Methodology · Corrections · Report an error