Brazil adds audit requirement to Crypto licensing process

Brazil’s central bank has introduced a mandatory independent-audit requirement for cryptocurrency service providers applying for new licenses or renewals, with audits to be performed by firms registered with the securities regulator (CVM). Audits will examine AML, counter-terror financing, custody, risk management and compliance; failures can block authorization. The move raises compliance costs (potentially tens to hundreds of thousands of dollars) and is likely to squeeze smaller exchanges and startups while major global platforms may absorb the expense to retain market access. The change comes as Bitcoin has fallen more than 10% over the past week and was trading near $68,960, and follows data showing Brazil processed roughly $318–319 billion in crypto flows in mid-2024–mid-2025 — underscoring the market’s importance.