Advantages of a DASP license in Brazil

Market regulation

Brazilian law provides transparent and consistent rules for regulating the virtual asset market. The Brazilian Central Bank and the Securities and Exchange Commission (CVM) control the sector, reducing legal risks and simplifying the licensing process.

International recognition

The DASP license complies with FATF standards, making it easier to operate globally. Companies registered in Brazil can work with international financial institutions, open bank accounts, and collaborate with partners in the US, EU, and Asia.

Tax benefits

Companies with a DASP license can take advantage of special tax regimes such as Simples Nacional, which reduces the tax burden and simplifies accounting. Several states offer additional preferences, including reduced income taxes and VAT exemption.

Access to international markets

Brazil has free trade agreements with dozens of countries, allowing companies to operate without additional permits. The DASP license provides access to global capital markets and investment platforms.

Government support

Fintech companies can take advantage of preferential financing programs, educational initiatives, and advisory support. Public and private organizations offer training courses and webinars to help businesses adapt to changing requirements.

Learn more about digital asset regulation in Brazil

Brazil is actively building a legal framework to regulate the cryptocurrency market to create a transparent and trustworthy environment for digital asset businesses.

The current regulatory framework is Law No. 14.478/2022, which assigns control of the cryptocurrency sector to the Central Bank of Brazil (Banco Central do Brasil) and the Securities and Exchange Commission (CVM). The Central Bank regulates financial aspects and standards enforcement, while the CVM monitors the legality of the use of digital assets in investment products.

In December 2024, the Central Bank published a draft regulation defining requirements for service providers dealing with virtual assets. This was an important step in the formation of clear regulatory rules, which are still in the development stage. The final version of the regulation is expected to be adopted in the first quarter of 2025, after which the licensing process will begin.

At the moment, Brazil does not have specialized cryptocurrency licenses similar to those in other countries. However, it is expected that companies will have to go through a licensing process and meet several requirements to operate:

• having the minimum required authorized capital;

• a registered office in Brazil;

• qualified personnel;

• an effective internal control and audit system.

Until the new regulation is adopted, cryptocurrency companies must comply with the general requirements applicable to financial institutions. This includes registration with the relevant government agencies and compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations.

Brazilian regulators are guided by international regulatory principles, including the recommendations of the FATF (Financial Action Task Force). This will help companies licensed in Brazil to work with international banks and partners in the US, EU, and other countries.

In addition, the new rules will provide enhanced consumer protection. Companies will be required to provide customers with information about the risks associated with investing in digital assets, as well as to ensure the cybersecurity of their platforms and the safe custody of user funds.

Who needs a DASP license in Brazil?

Today, operating in the cryptocurrency sector in Brazil requires a Digital Asset Service Provider (DASP) license, which is essentially the registration of a cryptocurrency company with the relevant government authorities. This authorization is required for legal entities that provide at least one of the following services:

• exchange of virtual assets into Brazilian or foreign currencies;

• exchange between different types of virtual assets;

• transfer of digital assets between users;

• management and administration of cryptocurrency assets, including storage and provision of tools to control them;

• provision of financial services related to the issuance or transfer of virtual assets.

Once the anticipated regulatory changes announced by the Brazilian government in late 2024 come into effect, companies providing these services will require a specialized Virtual Asset Service Provider (VASP) license.

Requirements for a DASP license in Brazil

As of today, the requirements for a DASP crypto license in Brazil include:

Minimum company composition

A minimum of one shareholder is required to obtain a license. This is a prerequisite for registering a company that will engage in cryptocurrency activities.

Minimum capital

Although Law No. 14478/2022 does not explicitly set the amounts of minimum authorized capital, in practice, companies must have sufficient financial resources. For crypto exchanges and crypto asset custody companies, the amount can exceed 2 million Brazilian reais (approximately 321,000 USD), while for technology and consulting companies the amount can be between 1 and 1.5 million reais (160,000 – 241,000 USD). The minimum amount of authorized capital today is 500 USD.

Appointment of a legal director

Every company obtaining a license must appoint a legal director. This person is responsible for legal compliance, dealing with regulators, and monitoring the company’s financial and reporting obligations.

Fiscal address in Brazil

Companies are required to register a legal address in Brazil. This confirms the physical presence of the business in the country and subjection to local laws. Documents confirming the right to use the premises must be provided.

Regulatory transparency

Companies are required to disclose financial and cryptocurrency transactions. Regular reporting must include profit and loss, flow of funds, and internal audits and controls to prevent financial crime.

Reporting suspicious transactions

Firms are required to inform the Financial Activities Control Board (COAF) and the Brazilian Securities and Exchange Commission of any suspicious transactions to prevent money laundering and other financial crimes.