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The Central Bank of Brazil (BCB) set new regulations for banks and brokers handling crypto assets in South American country. The new crypto rulebook specifies what banks and securities firms must submit and what an external certifier must confirm before offering crypto intermediation and custody services in Brazil. Instrução Normativa (IN) BCB No. 701 was published in Brazil’s official gazette on January 23, 2026, and will become effective on February 2, 2026. Brazil’s central bank formalizes crypto entry rules IN 701 does not build Brazil’s crypto framework from the ground up. It applies sections of BCB Resolution No. 520 (Nov. 10, 2025) by defining the communication steps and the essential content needed. Under IN 701, banks must maintain current registration in Unicad. Also, they must submit independent certification via the BCB’s APS-Siscom system. If the bank does not complete all required steps, the communication is ineffective at the BCB. The bank stays barred from providing crypto services under the new rules. Banks must hire an independent, qualified certifier to verify their compliance with the BCB rules for VASPs before starting operations. The certifier must sign a declaration with the applicant bank, confirming no corporate or commercial ties that might cause a conflict of interest. User funds must be separated Certifiers must verify that institutions keep user funds separate from company assets and show evidence of reserves for all digital assets held by both customers and the company. IN 701 requires the certification to clearly evaluate each item to determine if the institution meets baseline requirements. The certification must include operational controls common in prudential frameworks. These controls involve outsourced services, especially data processing and cloud computing.  It must also assess the technical and legal compliance of key suppliers, including those abroad.  Recovery plans for client assets and funds are required.…

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Filed under: News - @ January 25, 2026 12:02 am