Brazil's central bank requires crypto service providers to undergo financial audits and tightens licensing rules.

CoinFeed reported on June 2nd, citing Bits.media, that the Central Bank of Brazil has tightened licensing rules for virtual asset service providers, requiring them to undergo independent financial audits before obtaining operating licenses, effective June 1st. Auditors must not only examine the company's financial condition but also review its anti-money laundering and counter-terrorism financing compliance, including whether the platform separates its own funds from client assets, its risk management methods, and employee training. Auditors must register with the Brazilian Securities and Exchange Commission. Cryptocurrency exchanges, brokerage firms, and custody services applying for licenses for the first time must comply with these requirements from the start of the registration process, and existing licensed companies must also undergo independent audits when renewing their licenses. Brazil first explicitly regulated virtual asset services through central bank legislation in 2022, and established a category of licensed virtual asset service providers in November 2025.