Brazil's central bank's latest regulations set a capital threshold of up to $7 million for crypto companies.

Brazil's central bank has issued new regulations clarifying the operational methods, required capital amounts, and legal treatment of international cryptocurrency transactions for crypto companies. Some of the central bank's regulations, including capital requirements and time limits, have drawn criticism from the cryptocurrency industry. The central bank stated that companies in the industry must hold at least 10.8 million reais (US$2 million) in capital. Depending on the type of business, some companies may need to hold at least 37.2 million reais. This figure is significantly higher than the 1 million to 3 million reais proposed during the public consultation phase. Companies that fail to meet compliance deadlines (including demonstrating capital levels, cybersecurity controls, customer due diligence practices, and risk assessments) will be prohibited from operating. Foreign companies operating in Brazil must establish a local entity and transfer their operations under that structure.