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Argentina and Brazil, Latin America’s two largest economies, are preparing for full implementation of regulatory frameworks governing virtual asset service providers (VASPs) under the Argentine National Securities Commission (CNV) and the Central Bank of Brazil (BCB).
These frameworks aim to formalise previously unregulated virtual asset markets, balancing innovation with risk management.
For market participants, this will require updates to compliance practices, governance, reporting and cybersecurity, while navigating two distinct regulatory ecosystems.
CNV sets the rules in Argentina
In Argentina, the CNV issued General Resolution No. 1058 in March 2025. The regulation came into effect on December 31, 2025, and establishes principles for VASPs, including information security policies, prudential standards account and funds segregation, and customer protection disclosures.
The CNV emphasises avoiding over-regulation while fostering innovation. The Financial Intelligence Unit (UIF) will oversee risk-based anti-money laundering and counter-terrorism financing (AML/CTF) compliance, increasing transparency, mitigating financial crime and building market trust.
The CNV has issued a suite of related regulations and guidance aimed at refining the framework and clarifying obligations for VASPs, including on supervision fees and asset requirements.
Moving into 2026, further regulatory refinement and clarification are expected.
BCB introduces a comprehensive framework in Brazil
In Brazil, the BCB published Resolutions No. 519, 520 and 521 in November 2025. The regulations, effective since February 2, 2026, cover the VASP authorisation process, provision of services and related foreign exchange operations.
Together they create a comprehensive framework for virtual assets in Brazil that extends existing rules on customer protection, transparency and AML/CTF to VASPs, as well as introducing internal controls and reporting duties.
The framework balances “the incentive for innovation with the security of trading virtual assets”, according to the BCB. Its implementing regulations followed a string of security-centric regulations issued in 2025, including ones clamping down on fraudulent payments and cyberattacks.
For the near-term future of VASP supervision, we can expect the BCB to continue its prioritisation of security within the financial system. This will likely take the form of continued regulations refining the framework – both before and immediately after its effective date.
For traditional financial institutions and VASPs themselves, these developments will elevate regulatory expectations around counterparty risk management, third-party oversight, operational resiliency and data security.
Financial institutions will need clearer visibility into VASP partners, while VASPs will face deeper scrutiny of their governance, custody practices and AML/CTF controls.
The impact of the reforms
As Argentina and Brazil fine-tune their frameworks throughout 2026, firms should anticipate more detailed reporting requirements, frequent supervisory touchpoints and increased pressure to demonstrate well-documented compliance programmes.
Financial institutions should update due diligence processes to evaluate VASP controls, soundness and regulatory status; integrate VASP-related exposures into fraud prevention and cybersecurity programs; and establish cross-functional regulatory monitoring to anticipate new requirements and adjust integration strategies.
VASPS should strengthen governance, custody controls and AML/CTF protocols to meet evolving supervisory expectations; implement enhanced cybersecurity, data protection and incident response procedures; and build robust reporting and audit-ready documentation to demonstrate real-time compliance.
Firms that prepare now by aligning governance, operational and reporting processes will mitigate compliance risk, build trust and position themselves as credible partners in Latin America’s growing digital asset ecosystem.
Early engagement with regulators and proactive compliance will be critical for firms seeking to operate competitively and safely in the region’s rapidly maturing virtual asset markets.
