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Obtain a Crypto License in Brazil

Obtain a Crypto License in Brazil

Investors who wish to open a crypto company in Brazil have to understand and comply with the incorporation and licensing requirements for these types of businesses. The application process for a crypto license in Brazil is currently being set in place by Brazilian lawmakers.

Our team offers complete solutions for company formation in Brazil in many different business sectors, including for companies that will activate as virtual asset service providers (VASP).

Those who wish to open a cryptocurrency company can discuss the present and projected requirements with our team. A straightforward incorporation package is offered upon request, and by working with us business owners can rest assured that their business complies with the ongoing regulations.

The legal framework for crypto companies in Brazil

Brazil’s Central Bank has launched several public consultations addressing several issues concerning virtual asset service providers and the introduction of a VASP license in Brazil. Following several discussions, as well as meetings with cryptocurrency industry representatives, it was indicated that licensing will be divided into two phases.

As the need to apply for a crypto license in Brazil becomes apparent, companies that will be engaged in offering crypto exchange services will be targeted. The goal is to differentiate between crypto companies that are involved in cross-border payments (and using digital currency as a means to store value), compared to some companies that are not involved in international transfers.

Our team who can help you open a company in Brazil highlights some of the most important steps that have been taken by the Central Bank for the purpose of regulating the crypto sector thus far:

  • In June 2023 the country’s president signed a degree empowering the Central Bank to regulate cryptocurrencies;
  • The move was intended to help boost the growth of the sector;
  • According to law, virtual asset service providers must observe the laws for anti-money laundering and the prevention of terrorism financing;
  • The Central Bank establishes and continues to define the licensing system for a VASP license in Brazil;
  • Companies that activate in the crypto sector need to register with the Central Bank and thus obtain the equivalent of a crypto license in Brazil.

Part of the clarifications that are still expected are those on the treatment of digital assets as securities.

Our team specializing in company formation in Brazil can provide interested investors with updated information as it becomes available.

How to open a crypto company in Brazil

Aside from the matter of applying for a crypto license in Brazil, investors who open a crypto company need to follow the basic mandatory steps for company creation. We list these below:

  1. Choose a suitable business form: in many cases, this will be the limited liability company (LLC);
  2. Prepare the Articles of Incorporation: these are the company’s constitutive documents and our Brazil company formation agents can assist with their drafting;
  3. Offer information on the company’s shareholders and directors by providing the needed copies of personal documents;
  4. Open a bank account in Brazil for the new company;
  5. Register the LLC with the Brazil Company Registry;
  6. Once the company is incorporated, register for a crypto license in Brazil.

Different steps apply in the case of investors who open a branch in Brazil, not a limited liability company.

All LLCs are subject to local tax and reporting requirements. Some of the taxes for investors who open a crypto company in Brazil are the following:

  • 15% standard corporate income tax rate;
  • 34% combined nominal tax rate after the addition of the surtax;
  • 8% of the employee’s salary for the severance fund and 20% of the employee’s salary for the public pension system;
  • Other indirect taxes on goods and services.

Investors who want to open a company in Brazil can contact us for complete information on the incorporation requirements for a crypto LLC.