On January 29, 2026, the BCB published Normative Instruction BCB 704 (IN BCB 704), which entered into force on February 2 and established:

  • the procedures regarding the authorization process of virtual asset service providers (SPSAVs), exchange brokerage companies (exchange brokers), securities brokerage companies (CTVMS) and securities distribution companies (DTVMs);
  • the procedures regarding the authorization process of SPSAVs that were in effectiveness of BCB Resolution 519 and BCB Resolution 520 – both published on November 10, 2025;
  • the procedures regarding other processes that depend on authorization from the BCB – such as changes in the modality of operation, increase or capital reduction, merger, spin-off, incorporation, operation in the exchange market, among others – of the institutions mentioned above; and
  • procedures for acts that depend on communication, but without the need for an application for authorization, such as the communication of the assumption of the condition of holder of a qualifying holding.

With regard to SPSAVs that were already in operation before the effective date of BCB resolutions 519 and 520 (February 2, 2026), the authorization process will be divided into two phases.

The first phase should start with the petitioning of an application request for authorization before the BCB until October 30, 2026. Among the documents required to prepare the application are:

  • the application for the authorization procedure;
  • declarations of activity before February 2, 2026;
  • proof of unblemished standing of the controlling shareholders and holders of qualified holdings, in addition to authorizations for the BCB to access tax information and personal data of these individuals;
  • statement on the control of SPSAV; e
  • presentation of audited financial statements for the last three fiscal years.

After the presentation of all documents, the BCB will manifest itself on the authorization request. If the manifest is favorable, the SPSAV must start the second phase of the process in 60 days, a period that may be extended for another 60 days by requesting and submitting new documents.

In this second phase, several documents are required, including:

  • a specific request;
  • statements on the economic and financial capacity of the controlling shareholders;
  • information about the sources of funds used in the payment of the capital stock;
  • executive summary of the business plan; and
  • Statements from the managers about their standing and technical training.

In addition, the administrators must authorize the BCB to access information about them in public and/or private databases, including in relation to lawsuits and inquiries and data covered by confidentiality. The company, on the other hand, must confirm that it is aware of the legal and regulatory requirements applicable to managers.

At this stage, the BCB may request the presentation of parties or each such of the SPSAV business plans, in the model provided for in Annex I of the rule. This business plan should be divided into three main sections: operational, marketing, and financial.

The BCB wants each SPSAV to prove the financial feasibility of its operation and demonstrate compliance with operational requirements – mainly cybersecurity and internal controls – jointly with the complexity of its activities. It also wants to prove the market rationale that will guarantee the sustainability of SPSAV.

In the case of SPSAVs that were not in operation before February 2, 2026, CTVMs, DTVMs and foreign exchange brokers, the procedure will not be divided into phases.

The documents requested for this process are basically the same as those already mentioned. The difference is that there will be no need to substantiate and prove the existence of the exercise of a previous activity. As in the case of institutions that were already operating, the BCB may request the partial or complete presentation of the business plan, and not just the executive summary.

In the case of a company whose charter has been registered with the respective Board of Trade, if there is withdrawal, filing or rejection of the request for authorization to operate, the dissolution of the company or the change of its social object for an activity that does not depend on the authorization of the BCB must be proven within 15 days of the occurrence. It will also be necessary to substantiate, prove  the consequent change in the corporate name – which needs to reflect the activity carried out (due to the obligation to include specific terms of the activity).

IN BCB 704 also governs the instruction of requests for authorization to operate in the exchange market for SPSAVs, CTVMs, DTVMs and exchange brokers.

This request consists of an application accompanied by a reasoned justification, which proves the economic and financial feasibility of the project and the compatibility of the information technology infrastructure and the corporate governance structure jointly with the complexity and risks of the business to operate in the exchange market, according to the model brought in Annex III of IN BCB 704.

BCB IN 704 also established the contents of the reasoned justification necessary for the transfer or change of control, merger, spin-off or incorporation, changing of corporate purpose and exchange transaction, capital reduction and changing the modality of SPSAV's operation.

Machado Meyer is available to assess institutions interested in requests for authorization covered by the procedures of the new rule.