The Central Bank of Brazil has taken another decisive step in consolidating the regulatory framework for virtual assets. BCB Instruction No. 701/2026, which complements BCB Resolution No. 520/2025, establishes the requirements for the independent technical certification that must accompany applications for authorization to provide intermediation and custody services for virtual assets—a central step for those operating with stablecoins, tokenization, and market infrastructure.
For virtual asset service providers (VASPs), banks, fintechs, and funds, the Instruction provides operational clarity and reinforces standards that align stablecoins and their providers with the requirements applicable to the traditional financial system.
Among the key aspects of the mandatory technical opinion, the following stand out:
- Asset segregation and proof of reserves – critical to structuring robust backing and transparency models, especially for fiat-referenced stablecoins.
- Assessment of relevant services – including cloud services, processing, data security, and foreign providers that support stablecoin operations.
- Risk management, governance, and compliance – with special focus on AML/CFT/CPF, cybersecurity, internal audit, and continuous monitoring.
- Listing, suspension, and delisting of assets – with specific requirements for stablecoins, pursuant to Article 65 of Resolution 520.
- Internal controls and key redundancy – essential for custodians dealing with mint/burn mechanisms and reserve management.
- User transparency – including usage risks, information on staking, asset exposure, and the operation of the underlying infrastructure.
The Instruction also requires that each item be analyzed individually, leaving no room for generic opinions. The Central Bank may request additional details at any time, reinforcing the ongoing nature of supervision.
As of February 2, 2026, the market will operate in a clearer environment for the issuance, trading, and custody of stablecoins, with standards for proof of reserves, governance, and disclosure that bring Brazil closer to the most advanced international practices.
For institutions seeking to lead the integration of cryptoassets, stablecoins, and the financial system, Instruction No. 701 and Resolution No. 520 represent structural milestones and opportunities to build trustworthy, scalable, and regulated models.
