PANews reported on November 11th that, according to The Block, the Central Bank of Brazil issued new regulations for local digital asset companies on Monday, further tightening requirements for service providers to combat illicit activities. Under the new regulations, virtual asset service providers must obtain authorization from the Central Bank of Brazil to operate and are categorized into three types: virtual asset intermediaries, custodians, and brokers. The new regulations extend existing financial industry requirements such as customer protection, internal governance, and anti-money laundering to cryptocurrency service providers, requiring them to establish compliance and risk management systems. Service providers that meet the requirements and take sufficient measures will be granted operating authorization. Furthermore, the buying and selling of stablecoins pegged to fiat currencies, as well as international transfers or settlements using virtual assets, will be subject to foreign exchange market regulation; if unauthorized counterparties are involved, the transaction amount will be capped at $100,000. The new regulations will take effect in February 2026, giving companies nine months to adapt; those failing to comply by November 2026 will be required to cease operations.