Stablecoin Regulation: What BCB Instruction No. 701/2026 Changes For The Market

The Central Bank of Brazil has taken another decisive step in consolidating the regulatory framework for virtual assets. BCB Instruction No. 701/2026, which complements BCB Resolution No. 520/2025, establishes the requirements for the independent technical certification that must accompany applications for authorization to provide intermediation and custody services for virtual assets—a central step for those operating with stablecoins, tokenization, and market infrastructure.

For virtual asset service providers (VASPs), banks, fintechs, and funds, the Instruction provides operational clarity and reinforces standards that align stablecoins and their providers with the requirements applicable to the traditional financial system.