DASP license in Brazil
Brazil is becoming one of the most promising markets for cryptocurrency business, combining economic growth with active implementation of legislative initiatives. The country’s authorities seek to integrate digital assets into the traditional financial system, making the jurisdiction attractive to investors. However, Brazil’s crypto industry regulation continues to change, especially about banking crypto services and stablecoins. Gofaizen & Sherle’s experts can help you understand the specifics of local legislation and apply for a crypto license, providing comprehensive support at all stages of market entry.
In Brazil, virtual asset services (VASPs), including exchanges and wallets, are subject to a rapidly evolving legal framework. The primary regulatory authority is the Central Bank of Brazil, which is working on regulations for virtual assets under Law No. 14,478/2022. Currently, businesses operating in this space do not need specific licenses to function but must comply with existing guidelines and future regulations, expected to be finalized in 2025.
The regulations that will make the aforementioned law operative have not yet been issued. In this sense, the Central Bank of Brazil issued an official communication, referencing “Anuncio # 40.874” of 6/11/23, stating that until the regulation for the law is issued, Digital Asset Service Providers will not be authorized to operate in Brazil without previous authorization from the Central Bank. According to Article 9 of Law No. 14,478/2022, will have a minimum of 6 months to adapt to the new requirements after their final approval.
At the same time, the Brazilian government is actively developing support for cryptocurrency companies, offering tax incentives and educational programs. Small and medium-sized companies can take advantage of the simplified tax regime Simples Nacional, which combines several taxes into a single payment and reduces the administrative burden. In addition, companies engaged in innovative technologies can count on tax breaks on profits from the implementation of new developments.
Brazil also has educational and consulting programs, such as Blockchain Academy Brazil, that help entrepreneurs understand the regulation, taxation, and technological aspects of cryptocurrency transactions. Government agencies and private organizations conduct seminars, webinars and consultations, promoting transparency and sustainable development of the crypto industry.
Thus, obtaining a cryptocurrency license in Brazil offers significant business prospects. The country offers a stable legal environment, tax advantages and access to government programs to support innovative companies. However, given the dynamic nature of regulation, it is important to keep up with changes in legislation and work with qualified legal advisors to successfully enter the market.
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.
Request more information about the DASP license in Brazil
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.
Service packages for registration of DASP license in Brazil
- Elaboration of POAs draft for the incorporation of the company and the obtainmnt of the TAX IDs of the shareholders.
- Elaboration of draft to the articles of incorporation.
- Tax IDs for shareholders.
- Issuance of the Incorporation deed and registration before the Board of Trade.
- Registration of the company before the Tax authority and obtain Tax ID.
- Company registration with the central bank of Brazil.
- Nominee service of directors for 6 months.
- Bank account opening.
- Elaboration of POAs draft for the incorporation of the company and the obtainmnt of the TAX IDs of the shareholders.
- Elaboration of draft to the articles of incorporation.
- Tax IDs for shareholders.
- Issuance of the Incorporation deed and registration before the Board of Trade.
- Registration of the company before the Tax authority and obtain Tax ID.
- Company registration with the central bank of Brazil.
- Nominee service of directors for 6 months.
- Elaboration of POAs draft for the incorporation of the company and the obtainmnt of the TAX IDs of the shareholders.
- Elaboration of draft to the articles of incorporation.
- Tax IDs for shareholders.
- Issuance of the Incorporation deed and registration before the Board of Trade.
- Registration of the company before the Tax authority and obtain Tax ID.
- Company registration with the central bank of Brazil.
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.
Gofaizen & Sherle assists in obtaining a DASP license in Brazil.
Process for obtaining a DASP license
DASP registration in Brazil involves several steps:
Document preparation.
Step 1
The first stage involves collecting and preparing the necessary documents to prove that the company meets the requirements of Brazilian law. The package includes:
- shareholder information;
- legal directors.
- information on the Brazilian representative;
- company name;
- the company’s address in Brazil (we can provide it if necessary).
Documents issued abroad require apostilization. Financial statements, business plans, proof of management qualifications, and capital structure information are also required.
Obtaining tax identifiers.
Step 2
Shareholders and officers are required to obtain individual tax identifiers in Brazil (CPF). These are required for further company registration and regulatory filings.
Drafting and registration of constituent documents.
Step 3
At this stage, the company’s articles of incorporation are drafted and approved. The Articles of Association should include information on the types of activities, management structure, capital, and responsibilities of the participants. The document is registered with the Chamber of Commerce.
Company registration.
Step 4
The company is registered with the commercial register, the Federal Tax Service, the state tax authority, and the municipal government. After that, it is assigned a registration number (NIRE), which is required to obtain an e-CNPJ digital certificate.
Company registration with the Central Bank of Brazil.
Step 5
Registered companies are required to submit information to the Central Bank of Brazil (BACEN). This is necessary to comply with regulatory requirements including anti-money laundering (AML) and customer identification (KYC).
Once registered, the company is required to submit regular financial statements, comply with AML/KYC requirements, and update registration details when the business structure changes. The entire process of opening a cryptocurrency company in Brazil takes about 2 months.
Conclusion
Brazil is the largest cryptocurrency market in Latin America and is taking important steps towards creating a clear legal framework for cryptocurrency business. The introduction of new regulations will create a transparent and secure market for digital assets, ensuring the protection of users and the financial stability of companies. In 2025, regulation is expected to become more detailed and the licensing process for cryptocurrency companies is expected to begin in full. Providers will have to comply with local licensing requirements, tax obligations, and strict AML/CFT protocols. This will create an attractive environment for investors and market participants, fostering the development of the crypto industry in this jurisdiction. However, companies entering Brazil’s digital asset market must prepare for a growing regulatory environment with strict consumer protection and transparency rules.
FAQ about DASP license in Brazil
What is a DASP license?
A DASP license in Brazil is a registration with the government as a Digital Asset Service Provider (DASP).
What Act No. 14.478/2022 is about?
Act No. 14.478/2022 in Brazil regulates the virtual asset market by establishing the legal framework for cryptocurrency transactions. It defines requirements for Digital Asset Service Providers (DASPs) and provides measures against financial crimes such as money laundering.
Who needs a DASP license?
A DASP license in Brazil is required for companies providing services related to digital assets, including the exchange, storage, and management of cryptocurrencies. Registration is required to comply with local laws and prevent financial crime.
How long does it take to start a company in Brazil?
Starting a cryptocurrency company in Brazil usually takes between 15 and 60 days, depending on the accuracy of the paperwork, the region, and the speed of processing by government authorities.