Brazil Faces October 30 Deadline for Virtual Asset Service Provider Licenses

Brazil's digital asset sector is entering a final phase of licensing-driven regulation. According to ChainCatcher, CertiK said in a new report that the application deadline for virtual asset service provider authorization set by the Central Bank of Brazil is October 30 this year.Local and cross-border PSAVs are undergoing intensified compliance adjustments, and third-party compliance and security attestations have shifted from optional best practice to a market access requirement. CertiK said it is conducting independent external audits in Brazil under Central Bank of Brazil Normative Instruction No. 701.Brazil's crypto market significance is driven by its scale. According to ChainCatcher, the country ranks fifth globally in actual crypto adoption, and received $318.8 billion in on-chain assets from June 2024 to June 2025, accounting for nearly one-third of South America's on-chain activity during the period.The report also said stablecoins account for about 80% of reported crypto transaction volume submitted to the Brazilian Federal Revenue Service. It added that stablecoins have become a core settlement infrastructure in the local market, while offshore channels that fail security audits and compliance certification may face removal as the central bank's rules take effect at the end of October.