Brazil's crypto framework advanced significantly in 2025 under Law 14.478/2022 (Virtual Assets Law).Central Bank Oversight: Banco Central do Brasil (BCB) issued resolutions 519, 520, and 521 in November 2025, requiring Virtual Asset Service Providers (VASPs) to obtain licenses as Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs). Rules mandate AML/CTF compliance, capital requirements (up to ~$7M), cybersecurity, and treat many crypto transactions (especially stablecoins) as foreign exchange operations. Effective February 2026, with adaptation period.Securities: CVM regulates security-like tokens.Taxation & Reporting: Receita Federal introduced DeCripto system (aligning with OECD CARF), mandatory reporting for foreign/DeFi platforms, and Rearp program for undeclared assets regularization (ended/in effect December 2025). Gains taxed 15-22.5%.These rules enhance transparency, investor protection, and integrate crypto into financial system, positioning Brazil as LATAM leader.