Central Bank Authorizes Company Capitalization With Virtual Assets

On September 11, the Central Bank of Brazil (BCB) published Resolution No. 410, which amends Resolution No. 278, the main regulation governing Law No. 14,286, dated December 29, 2021, concerning foreign capital in the country, external credit operations, foreign direct investment, and the respective reporting of information to the BCB.

The new resolution, which will come into effect on October 1, 2024, introduces several significant changes. Among them is the possibility for foreign investors to capitalize Brazilian companies with virtual assets, as defined by Law 14,478/2022. Additionally, the reporting of these foreign capital movements to the Foreign Capital Information System for Direct Foreign Investment (SCE-IED) will once again be mandatory.