Summary
- Brazil’s developing crypto sector is creating an environment where digital assets are increasingly becoming part of everyday life.
- Those using crypto show an interest in diversification while institutional transactions reveal the greatest growth.
- Regulation is developing, with specific crypto legislation introduced in 2022 and 2025.
- For more information on how crypto is being used in countries worldwide, visit our Crypto in Action page.
How is crypto used in Brazil?
Brazil ranks fifth globally for crypto adoption and is Latin America’s leading crypto market. Between July 2024 and June 2025, it registered $318.8 billion in crypto value received, representing almost one-third of the region’s crypto activity.
Crypto usage began as a way to hedge against the endemic economic problems of inflation and currency volatility, and has grown into a means to pay and receive remittances, trade, invest, and make online payments.
Brazil is notably receptive to the idea of digital assets and funds, something that has its roots in the country’s digital payment system, Pix, launched in 2020.
As of 2024, 84% of the population used the internet, and 76% used Pix, making it the country’s most used financial transaction method. By 2024, approximately 47% of all financial transactions in Brazil took place on the platform, a number that is reported to have continued to grow during 2025. This level of digital literacy and access allows users to easily move funds from Pix or their bank accounts into crypto exchanges via apps.
This has provided the basis for a broad acceptance of, and interest in, crypto, which has developed with its growing integration into the country’s financial system. A young population and high digital connectivity rates underpin this shift. It is estimated that anywhere between 7.8% and 19% of the population own crypto.
Where is Brazil’s crypto growth coming from?
The central bank, Banco Central do Brasil (BCB)’s regulatory decisions have been credited with helping to develop a digital assets system into which larger institutions can, and are willing, to enter. There has been a marked growth in institutional interest in crypto, and it is institutions’ transfers that are fuelling the growth of Brazil’s crypto economy.
Three of the country’s banks – Itaú Unibanco (the country’s largest private bank), Mercado Pago and neobank, Nubank – have entered the crypto space. Itaú set up a crypto fund division in September 2023 and at the year’s end, launched a bitcoin and ether trading app. In December 2025, the bank made headlines when a partner in its investment arm suggested that its customers allocate up to 3% of their portfolio to digital assets.
Stablecoin usage is significant, with more than 90% of the country’s crypto flows taking place in stablecoins. Many are pegged to the US dollar, but Brazilian real (BRL)-pegged stablecoins are becoming more popular. Often stablecoins are used for remittances; in 2024, inbound remittances registered more than $4.9 billion.
Also notable are the country’s fiat-to-crypto transactions. Underscoring the extent of these smaller transactions, a reportfrom Mercado Bitcoin suggested that total transaction volume rose 43% year-on-year in 2025. The average investment per user crossed $1,000, and a total of 18% of investors allocated funds to more than one crypto asset, illustrating a shift towards diversification.
Overall, Brazilian crypto users are cautious, showing interest in stablecoins and tokenized bonds as a way to protect their wealth. During 2025, lower-risk crypto products became increasingly popular. Known as Renda Fixa Digital (RFD), there are fixed-income offerings, which during their first year recorded a 108% increase in investment volume.
In terms of the demographic using crypto, there has been interest and engagement from all age groups, although this is weighted towards those aged 24 and under in terms of the fastest-growing investor group. Regionally, the country’s south and south-east (the latter home to Rio de Janeiro and São Paulo), lead transaction volumes. In terms of income, those on lower incomes typically trade in and use bitcoin, while middle-income users are more attracted to stablecoins.
The authorities’ attitude towards crypto
The authorities have shifted their attitude from one of caution to support. They seek to balance high adoption rates with financial stability. A further shift has been noted from “innovation-friendly” to “banking-style safety”. Notably, it is the BCB that acts as the primary regulator.
Cryptocurrencies are not regarded as legal tender, but the authorities recognize them as a legal financial asset. Virtual assets have been defined. Token taxonomy follows the functional distinction (securities versus virtual assets), and the authorities have implemented anti-money laundering (AML), know your customer (KYC) regulations, as well as a number of other reporting requirements.
The framework governing the sector continues to develop and deepen. For example, a November 2025 resolution established a two-stage authorization process for market players; provided asset segregation requirements; and integrated virtual asset activities into the foreign exchange market.
The BCB has been exploring a digital currency – the digital real (Drex). During 2022, it conducted a detailed analysis of potential uses. In February 2023, it revised Drex’s guidelines, and during the following month, began a pilot for wholesale transactions. This was due to conclude in 2024, but continued into 2025, with a launch expected during 2026. Its preference appears to be to use the CBDC rather than bitcoin, with a focus on modernizing payments.
In other notable moves, the authorities approved the first spot exchange traded fund (ETF) in early 2025. Alongside all this, a regulatory sandbox is in operation, allowing the authorities to test out new business models and project ideas.
Financial crime and executive power
The authorities have been keen to tackle crypto financial crime. In 2025, ahead of introducing greater regulation, Brazilian police dismantled a $540 million crypto laundering network with links to drug trafficking, smuggling, and terrorist financing. This marked the sixth large-scale blockchain-related operation. Not only do these operations send a strong message to criminals, but more effective oversight and astute use of blockchain analytics are creating greater opportunities for crypto seizures. This is important for a country keen to develop a strategic bitcoin reserve. In 2024, Brazilian lawmakers introduced a bill (Bill 4501/2024) to establish a Sovereign Strategic Bitcoin Reserve (RESBit), a move that could redefine the country’s approach to managing its financial reserves.
There is not always harmony in policy-making. The cross-party Parliamentary Front for the Free Market lobbies for economic liberalism. It is typically pro-crypto and argues against what it describes as the overreach of executive power into the sector. In 2026, it announced its intention to block a decree to establish a 3.5% tax on stablecoin transactions. It added that it would introduce its own legislative decree to block the measure, a move that would mean the issue would be discussed in Congress and executive’s decree potentially repealed.
How Brazil’s crypto legislation is developing
The country’s first foray into specific crypto legislation came in December 2022, when Congress passed the Brazilian Virtual Assets Law (BVAL). This came into effect the following June and laid out rules for virtual asset service providers (VASPs), requiring KYC and AML compliance.
It has become a requirement that companies operating in the crypto sphere have a license to operate, obtain a legal entity registration number (Cadastro Nacional da Pessoa Jurídica (CNPJ)), and report any suspicious activity to the Conselho de Controle de Atividades Financeiras (Council for Control of Financial Activities (COAF)). The central bank was given authority to license and supervise exchanges and wallets.
Alongside this, digital assets have fallen under other legislation. Companies must adhere to the country’s Consumer Defense Code (Código de Defesa do Consumidor), Brazilian Penal Code, its Law on the Prevention of Money Laundering, and Law on Crimes Against the National Financial System.
In November 2025, the BCB released a new set of rules for virtual asset service providers (VASPs) in which it created a formal licensing regime, and classified a range of crypto activities as subject to foreign exchange or capital market rules.
It mandated VASPs’ need to obtain BCB authorization to operate. Essentially, these tightened requirements for service providers to strengthen efforts against illicit activities, extending financial sector requirements to the crypto sphere. Among the new requirements were the need to establish cybersecurity policy, compliance and risk management systems, and protocols covering incident response.
Additionally, service providers were also separated into three categories: virtual asset intermediaries, custodians, and brokers. Fiat-pegged stablecoin purchases or sales were placed under the scope of the country’s foreign exchange market regulation. These changes came into effect in February 2026 with companies given until November 2026 to fully comply.
Alongside this, during 2025 the BCB issued three resolutions (519, 520 and 521), which established requirements and obligations in a number of areas, and all come into effect in 2026. Broadly:
519 – established a licensing regime for intermediary, custodian and broker.
520 – covered governance, mandating VASPs to maintain governance policies and dictating that a minimum of three directors or statutory officers be resident in Brazil. This resolution also covered risk mitigation, security, and solvency requirements.
521 – made the “travel rule” a domestic obligation, and added know your transaction (KYT) requirements. It also set transaction limits of $100,000 (for VASPs) and $500,000 for specific financial institutions.
In February 2026, a bill proposing the acquisition of up to one million bitcoin over five years as part of the country’s proposed national strategic bitcoin reserve was introduced before Congress. If passed, this would make Brazil one of the largest holders of bitcoin. Additionally, it proposed accepting bitcoin as federal taxation payment, banning the sale of bitcoin seized by judicial authorities, and establishing incentives for bitcoin mining and holding companies.
Timeline of legislation
2020
In August, a working group was created to research a digital Brazilian currency, the Drex.
2021
The BCB established guidelines for the Drex based on the working group’s results.
2022
The BCB continued its work on the Drex over the course of the year.
The BVAL (Law No. 14,478) was passed. In December, the president signed it into law, with the legislation coming into effect 180 days later.
2023
In February, the BCB revised the Drex guidelines, and the following month launched Piloto Drex (with the aim of concluding this in late 2024).
2025
The BCB launched Public Consultation 126 in October, which proposes prudential regulations for the exposure of financial institutions to virtual assets and tokens.
In November, the BCB released further rules for VASPs, tightening requirements for service providers to strengthen efforts against illicit activities.
2026
The BCB’s new rules took effect in February, with companies given nine months to comply.
Also in February, a bill proposing the acquisition of up to one million bitcoin as part of the country’s proposed bitcoin reserve was introduced before Congress.
In March, it was reported that the Parliamentary Front for the Free Market (a pro-crypto faction in Congress), was expected to attempt to block the authorities’ plans to place a 3.5% tax on stablecoins.
Outlook
There are few crypto sectors worldwide that have developed as robustly as that of Brazil, and it’s argued that Brazil is now in the position where it’s shaping crypto trends rather than following them.
The mix of a digitally literate population, a historically unstable economy, and authorities who have supported but also regulated the sector has created fertile ground for digital asset usage and growth.
Increasingly, digital assets are expected to play a role in everyday activities, alongside which, institutional interest in crypto shows no signs of waning. For its part, the BCB continues to focus on regulating tokenization and is looking at the potential of integrating digital wallets into payment systems.
Inevitably, there are those who feel that the sector should be given greater freedom to innovate, but proponents argue that a good balance has been struck between providing space for the sector to innovate, while also using regulation to protect users and counter financial crime.
