Has Brazil Set LATAM’s Compliance Roadmap?

The global transition of digital assets from a frontier market to a mature financial sector is highlighted by the continued adoption of regulatory standards by governments worldwide. One of the key elements to look for when analysing how entrenched crypto regulations are becoming is the presence of the Crypto Travel Rule in a jurisdiction, and in Brazil, the largest cryptoasset market in LATAM, that regulation is soon to be enforced. 

In a recent announcement from the Banco Central do Brasil (BCB), it was revealed that by February 2026 a new regulatory framework will be put into effect that will see the regulation of crypto overhauled. This is of particular note as Brazil accounts for around a third of all crypto activity in LATAM, and where it leads, other countries in the region may well follow. 

Even beyond LATAM, this is a significant maneuver. Brazil is ranked 5th on the 2025 Global Crypto Adoption Index, and in embracing regulatory standards that have grown in use around the world it only highlights that compliance is essential and that a global regulatory standard, from the EU’s MiCA framework to Brazil’s new rules, should be the expected norm. 

For Brazil, there are three key resolutions involved in this endeavour, which cover, amongst other elements, new authorization pathways for both new and existing entities wishing to obtain licenses to operate legitimately, transparency standards, minimum capital thresholds, and security measures that meet Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) protocols - as well as the implementation of the Travel Rule. 

The Travel Rule demands that VASPs transmit identifying information about the originator and beneficiary of a virtual asset transfer when the transaction exceeds a certain threshold. It requires the sending VASP and the receiving VASP to know who they are dealing with, and in doing so, reduces the risk of fraud and malicious actors, improving the safety and security of the crypto space for all involved. 

For legitimate operators, this should be seen as a positive sign, as a healthier market and uniform regulations make the future of the crypto scene more stable, secure and promising, but for smaller operators in particular, the costs associated with compliance may be a concern. 

To mitigate this concern, Blockpass provides identity verification tools that meet all the criteria of existing regulations and crypto markets, as well as continued development as new compliance standards emerge, in all jurisdictions. It does so with a focus on safety and security and privacy, but also with a view to affordability through its proprietary re-usable KYC model. As businesses both in Brazil and the wider world adapt to the changing regulatory landscape, partnering with Blockpass will take the burden of achieving compliance and worries of the cost of compliance off their shoulders.

For those ready to embrace the value of these new regulatory standards, this is the moment to build trust, attract institutional capital, and operate legitimately within one of the world’s fastest-growing digital economies. For those who hesitate, the door to the Brazilian market is quickly closing.