Brazil Tightens Regulations on Crypto Firms, Aims to Curb Illegal Activity

Brazil’s central bank has introduced stricter regulations aimed at the cryptocurrency industry. These new guidelines require all crypto firms, including intermediaries, custodians and brokers, to obtain authorization from the Brazilian Central Bank before operating. This ensures adherence to rigorous customer protection, governance, and cybersecurity standards, similar to those in traditional finance. Companies must also establish robust compliance and risk management systems and have clear incident response strategies in place.