Presidency of the Republic

General Secretariat

Sub‑Chief for Legal Affairs

LAW NO. 14,478, OF DECEMBER 21, 2022

Effective

Regulation Effective

This Law provides guidelines to be observed in the provision of virtual asset services and in the regulation of virtual asset service providers; it amends Decree‑Law No. 2,848 of December 7, 1940 (Penal Code) to create the crime of fraud using virtual assets, securities or financial assets; and it amends Law No. 7,492 of June 16, 1986, which defines crimes against the national financial system, and Law No. 9,613 of March 3, 1998, which deals with money laundering, to include virtual asset service providers in their provisions.

THE PRESIDENT OF THE REPUBLIC

I hereby announce that the National Congress decrees and I sanction the following Law:

Article 1

This Law provides guidelines to be observed in the provision of virtual asset services and in the regulation of virtual asset service providers.

Single paragraph. The provisions of this Law do not apply to assets representing securities subject to Law No. 6,385 of December 7, 1976, and do not alter any competence of the Securities and Exchange Commission.

Article 2

Virtual asset service providers may operate in the Country only with prior authorization from a federal public administration body or entity.

Single paragraph. The act of the federal public administration body or entity referred to in the caput shall establish the hypotheses and parameters under which the authorization mentioned in the caput of this article may be granted through a simplified procedure.

Article 3

For the purposes of this Law, a virtual asset is the digital representation of value that can be traded or transferred by electronic means and used for payments or investment purposes, excluding:

1. National currency and foreign currencies;
2. Electronic money, pursuant to Law No. 12,865 of October 9, 2013;
3. Instruments that provide the holder access to specified products or services or to benefits derived from those products or services, such as points and rewards of loyalty programs; and
4. Representations of assets whose issuance, bookkeeping, trading or settlement is provided for by law or regulation, such as securities and financial assets.

Single paragraph. It shall be the competence of the federal public administration body or entity defined by an act of the Executive Power to establish which financial assets will be regulated for the purposes of this Law.

Article 4

The provision of virtual asset services must observe the following guidelines, according to parameters to be established by the federal public administration body or entity defined by an act of the Executive Power:

1. Free initiative and free competition;
2. Good governance practices, transparency in operations and a risk‑based approach;
3. Information security and protection of personal data;
4. Protection and defense of consumers and users;
5. Protection of popular savings;
6. Soundness and efficiency of operations; and
7. Prevention of money laundering, terrorist financing and proliferation of weapons of mass destruction, in alignment with international standards.

Article 5

A virtual asset service provider is a legal entity that, on behalf of third parties, performs at least one of the following virtual‑asset services, understood as:

1. Exchange between virtual assets and national currency or foreign currency;
2. Exchange between one or more virtual assets;
3. Transfer of virtual assets;
4. Custody or administration of virtual assets or instruments that enable control over virtual assets; or
5. Participation in financial services and provision of services related to the offering by an issuer or sale of virtual assets.

Single paragraph. The federal public administration body or entity indicated by an act of the Executive Power may authorize the performance of other services that are directly or indirectly related to the activity of the virtual asset service provider referred to in the caput of this article.

Article 6

An act of the Executive Power shall assign to one or more federal public administration bodies or entities the discipline of operation and the supervision of the virtual asset service provider.

Article 7

It is the competence of the regulatory body or entity indicated by an act of the Federal Executive Power to:

1. Authorize operation, transfer of control, merger, spin‑off and incorporation of the virtual asset service provider;
2. Establish conditions for the exercise of positions in statutory and contractual bodies of the virtual asset service provider and authorize the appointment and exercise of persons to administrative positions;
3. Supervise the virtual asset service provider and apply the provisions of Law No. 13,506 of November 13, 2017, in case of non‑compliance with this Law or its regulation;
4. Cancel, ex officio or upon request, the authorizations referred to in items I and II of this caput; and
5. Provide for the hypotheses in which the activities or operations referred to in Article 5 of this Law will be included in the foreign exchange market or will be subject to the regulation of Brazilian capital abroad and foreign capital in the Country.

Single paragraph. The federal public administration body or entity referred to in the caput shall define the hypotheses that may trigger the cancellation provided for in item IV of this article’s caput and the respective procedure.

Article 8

Institutions authorized to operate by the Central Bank of Brazil may provide the virtual asset service exclusively or combine it with other activities, in the form of regulation to be issued by a federal public administration body or entity indicated by an act of the Federal Executive Power.

Article 9

The federal public administration body or entity referred to in the caput of Article 2 of this Law shall establish conditions and deadlines, not less than six (6) months, for the adaptation of virtual asset service providers that are already operating to the provisions of this Law and to the norms established by it.

Article 10

Decree‑Law No. 2,848 of December 7, 1940 (Penal Code) shall henceforth include the following Article 171‑A:

Fraud with the use of virtual assets, securities or financial assets

Article 171‑A. To organize, manage, offer or distribute wallets or intermediate operations that involve virtual assets, securities or any financial assets with the purpose of obtaining illicit advantage, to the detriment of others, by inducing or maintaining someone in error, through artifice, trick or any other fraudulent means.

Penalty – imprisonment of four (4) to eight (8) years, and a fine.

Article 11

The single paragraph of Article 1 of Law No. 7,492 of June 16, 1986, shall henceforth read as follows:

Article 1 …

Single paragraph …

…

I‑A – the legal entity that offers services related to operations with virtual assets, including intermediation, trading or custody;

… (NR)

Article 12

Law No. 9,613 of March 3, 1998, shall henceforth read as follows:

Article 1 …

…

§ 4º The penalty shall be increased by one‑third (1/3) to two‑thirds (2/3) if the crimes defined in this Law are committed repeatedly, through a criminal organization, or by means of a virtual asset.

… (NR)

Article 9 …

…

Single paragraph …

…

XIX – the virtual asset service providers.

… (NR)

Article 10 …

…

II – they shall maintain a record of every transaction in national or foreign currency, securities, credit titles, metals, virtual assets, or any asset convertible into money that exceeds the limit set by the competent authority and in accordance with instructions issued by it;

… (NR)

Article 12‑A. An act of the Federal Executive Power shall regulate the discipline and operation of the National Register of Politically Exposed Persons (CNPEP), made available through the Transparency Portal.

§ 1º The bodies and entities of any Union, State, Federal District and Municipal Powers shall forward to the CNPEP manager, in the form and periodicity defined in the regulation referred to in the caput of this article, updated information about their members or former members classified as politically exposed persons (PEPs) under current legislation and regulation.

§ 2º The persons referred to in Article 9 of this Law shall include consultation of the CNPEP among their procedures to fulfill the obligations set out in Articles 10 and 11 of this Law, without prejudice to other diligences required by law.

§ 3º The CNPEP managing body shall indicate, through active transparency on the internet, the bodies and entities that fail to comply with the obligation provided in § 1º of this article.

Article 13

The provisions of Law No. 8,078 of September 11, 1990 (Consumer Defense Code) shall apply, where applicable, to operations conducted in the virtual asset market.

Article 14

This Law shall enter into force after the lapse of one hundred and eighty (180) days from its official publication.

Brasília, December 21, 2022; 201st of Independence and 134th of the Republic.

Jair Messias Bolsonaro

Marcelo Pacheco dos Guaranys

Wagner de Campos Rosário

This text does not replace the version published in the Official Gazette on 22‑12‑2022.