Brazil's crypto legal framework: what Law 14,478 already requires and what the Central Bank still has to regulate
In force since June 2023, the legal framework defined what a virtual asset is, required prior authorization and created new crimes. The operating rules, however, still depend on Central Bank of Brazil (BCB) regulations.
Historical reference: June 10, 2025. Published on this site on November 2, 2026. Dates in the text identify the period covered.
In this article
Key points
- Law 14,478/2022 has applied since June 20, 2023: virtual asset providers may only operate with prior authorization and must follow seven guidelines, from governance to money laundering prevention.
- Decree 11,563/2023 chose the Central Bank of Brazil (BCB) as regulator and supervisor, without removing the CVM's (Brazil's securities regulator) powers over securities.
- The law created the crime of fraud with virtual assets (art. 171-A of the Penal Code, 4 to 8 years) and subjected providers to the laws on financial crimes and money laundering.
- In June 2025, the BCB's rules on authorization, operation and foreign exchange were still being drafted, after public consultations that closed in February.
Law 14,478, of December 21, 2022, is known as the crypto legal framework. It does not regulate the market as a whole. It defines concepts, sets principles, creates crimes and hands a federal agency the task of detailing the rest. Almost two years after it took effect, much of that detailing is still pending. This article separates what the law already requires from what depends on rules not yet published.
- start of Law 14,478's effect, 180 days after publication
- June 20, 2023
- prison term for fraud with virtual assets (art. 171-A)
- 4 to 8 years
- guidelines that every virtual asset service must follow
- 7
What the law defines
Article 3 defines a virtual asset as a digital representation of value that can be traded or transferred by electronic means and used for payments or investment. Excluded are national and foreign currency, electronic money, loyalty program points and representations of assets whose issuance or trading is already provided for in law or regulation, such as securities and financial assets. Securities remain under the CVM.
The law calls a virtual asset service provider a legal entity that performs, on behalf of third parties, at least one of these services: exchange between virtual assets and currency, exchange between virtual assets, transfer, custody or administration, and participation in financial services tied to the issuance or sale of virtual assets.
What already applies to providers
Under article 7, the regulator is responsible for authorizing the operation and change of control of providers, supervising them, canceling authorizations and deciding when an activity enters the foreign exchange market or the international capital rules. Under article 9, companies already operating will have a compliance period set by the regulator, of at least six months.
What Decree 11,563/2023 delegated to the Central Bank
The law did not say which agency it would be. That choice came with Decree 11,563, of June 13, 2023, which designated the Central Bank of Brazil to regulate, authorize and supervise providers. The decree preserves the CVM's powers over assets that are securities, as well as consumer protection and money laundering prevention duties.
In practice, the Central Bank was given the task of saying who can operate, with how much capital, under what governance and in what conditions. Without those rules, the prior authorization requirement has little operational effect, because there is not yet a procedure for requesting it.
The crimes it provides for
| Rule | What changed | Effect |
|---|---|---|
| Penal Code, art. 171-A | New crime: organizing, managing, offering or distributing portfolios, or intermediating operations with virtual assets, securities or financial assets, to obtain an unlawful advantage through fraud | Prison term of 4 to 8 years and a fine |
| Law 7,492/1986 (crimes against the financial system) | The virtual asset service provider is treated as equivalent to a financial institution | Operating without the required authorization may constitute a crime under this law |
| Law 9,613/1998 (money laundering) | Penalty increased by one third to two thirds when the crime uses virtual assets; providers are included among the obligated parties | Record keeping, customer registration and reporting of suspicious activity |
Pyramid schemes and promises of guaranteed returns with crypto assets can be prosecuted, depending on the case, under art. 171-A. The new offense does not depend on the Central Bank having published its rules: it has applied since the law took effect.
What still needs to be regulated
In November 2024, the Central Bank opened three public consultations. CPs 109 and 110, of November 8, dealt with the operation and authorization of providers; what they proposed, such as the three categories and the minimum capital of R$1 million to R$3 million, is in what public consultations 109 and 110 propose. CP 111, of November 29, proposed bringing international payments and transfers with virtual assets into the foreign exchange market; the stablecoin debate it opened is in stablecoins and crypto flows in Brazil. The deadline for CPs 109 and 110, initially February 7, was extended to February 28, 2025, the same cutoff as CP 111.
- Dec. 21, 2022Law 14,478 is signed, with no vetoes.
- June 13, 2023Decree 11,563 designates the Central Bank as regulator.
- June 20, 2023The law takes effect.
- Nov. 2024The Central Bank opens public consultations 109, 110 and 111.
- Feb. 28, 2025Deadline for contributions to the consultations ends.
- June 2025Final rules on authorization, operation and foreign exchange not yet published.
Until the final rules are published, the following remain pending:
- Authorization and operation: minimum capital, governance, internal controls, segregation of client assets and provider categories.
- Foreign exchange: when an operation with a virtual asset, such as an international payment with a stablecoin, is treated as a foreign exchange operation and under what limits.
- Transition: the period that companies already in business will have to apply for authorization.
- Taxation: the law does not address taxes. Today the rules come from Brazil's Federal Revenue Service (Receita Federal), such as the monthly reporting under Normative Instruction 1,888/2019.
- Real-pegged stablecoins and other issuers: the law has no specific rule for those who issue digital currencies pegged to the real, a topic covered in real stablecoins: BRZ, BRLA and cREAL.
For importers who use stablecoins to pay suppliers, the heaviest issue is foreign exchange. Until there is a rule, the classification of these operations remains open, and the prudent course is to keep complete records of each payment, with supporting documents and the transaction receipt.
Frequently asked questions
Does Law 14,478 already regulate cryptocurrencies in Brazil?
Only in part. It defines virtual assets, requires prior authorization of providers, lists guidelines and creates crimes. The rules on authorization, capital and operation depend on Central Bank regulations, which in June 2025 were still being drafted.
Who regulates virtual asset providers?
The Central Bank of Brazil, designated by Decree 11,563 of June 13, 2023. The CVM keeps its authority over assets that are securities.
What is the penalty for fraud with crypto assets?
Art. 171-A of the Penal Code, added by Law 14,478, provides a prison term of 4 to 8 years and a fine for anyone who organizes, manages, offers or distributes portfolios, or intermediates operations with virtual assets, in order to obtain an unlawful advantage through fraud.
Does the law cover gains and taxes on cryptocurrencies?
No. The legal framework creates no tax and changes no rates. Receita Federal handles the subject through normative instructions, such as IN 1,888/2019, which requires monthly reporting of operations in certain situations.
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Sources
- Lei nº 14.478, de 21 de dezembro de 2022 · Planalto, Dec 22, 2022
- Decreto nº 11.563, de 13 de junho de 2023 · Câmara dos Deputados (Legislação Informatizada), Jun 14, 2023
- BC apresenta para consulta pública proposta de regulamentação da prestação de serviços de ativos virtuais e do respectivo processo de autorização · Banco Central do Brasil, Nov 8, 2024
- BC coloca em consulta pública proposta de regulação para atividades e operações das prestadoras de serviços de ativos virtuais no mercado de câmbio e em capitais internacionais · Banco Central do Brasil, Nov 29, 2024
- BC prorroga prazos de encerramento de três Consultas Públicas · Banco Central do Brasil, Jan 30, 2025
- Ativos virtuais: entenda os impactos da regulação (Consulta Pública 109/24) · KPMG, Jan 31, 2025
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