Bitcoin in Brazil: Legal Status, Tax Rules and the Right to Self-Custody

As of October 20, 2026, Bitcoin is legal to own, buy, sell and self-custody in Brazil, but it is not legal tender. Federal Law 14.478 of December 21, 2022 treats it as a "virtual asset", and the Banco Central do Brasil licenses the companies that exchange or hold it for others. Individuals pay income tax on gains, under the same capital gains rules that apply to other property.

Translations of Portuguese legal texts in this guide are my own.

Yes. No federal statute prohibits an individual from owning or trading Bitcoin. Law 14.478/2022, the legal framework for virtual assets [marco legal dos ativos virtuais], regulates the businesses around it instead. It took effect 180 days after its publication in the Official Gazette of December 22, 2022, under its Article 14.

No. Legal tender [curso legal] is money that must be accepted in payment within the country. Under Article 1 of Law 9.069/1995, that status belongs to the real. Article 3, item I of Law 14.478 excludes national and foreign currencies from the definition of a virtual asset.

A virtual asset [ativo virtual] is "the digital representation of value that can be traded or transferred by electronic means and used to make payments or for investment purposes," under Article 3 of Law 14.478/2022. Bitcoin fits that definition. The same article excludes currency, electronic money, loyalty points and representations of assets governed by other laws, such as securities.

The decisions verified for this guide protect Bitcoin held for clients, and the tax administration lists it as an asset. The Federal Revenue Service's filing manual lists Bitcoin among the assets [bens] reported in the annual declaration, at acquisition cost.

The Superior Court of Justice (Superior Tribunal de Justiça, STJ) protects Bitcoin held at platforms. In REsp 2.104.122, its Fourth Panel held a platform strictly liable for a fraudulent Bitcoin transfer made with the client's login, password and two-factor code.

In CC 200.512, involving a company accused of running a Bitcoin scheme, the STJ refused to send assets seized in criminal proceedings to the bankruptcy court.

No. A license is required only to provide virtual asset services to others, and holding or self-custodying your own Bitcoin is not such a service.

Article 2 of Law 14.478/2022 states that virtual asset service providers may operate in Brazil only with prior authorization. Article 5 defines a provider [prestadora de serviços de ativos virtuais] as a legal entity that carries out, "on behalf of third parties," at least one listed service, such as exchange, transfer or custody.

An individual buying or storing sats for themselves acts on their own behalf, not for third parties.

The Banco Central do Brasil (BCB) does. Decree 11.563/2023, in force since June 20, 2023, empowers the BCB to "regulate, authorize and supervise" providers. A decree is binding executive regulation, and BCB resolutions issued under it bind the entities they cover. The decree leaves untouched the powers of the Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários, CVM).

They require authorization, separation of client assets and a filing deadline. The resolutions are dated November 10, 2025 and were published in the Official Gazette on November 11, 2025.

BCB Resolution 519/2025, on authorization, and BCB Resolution 520/2025, on provider companies, both took effect on February 2, 2026, under Article 28 of the former and as the BCB's Voto 80/2026 records for the latter.

Under Articles 29 and 30 of Resolution 520, client virtual assets must sit in wallets separate from the provider's own. Article 31 forbids using client assets, with exceptions that include staking.

Under Article 22 of Resolution 520, BCB-authorized institutions, such as banks, that already offered virtual asset services must notify the BCB within 270 days of entry into force. Counted from February 2, 2026, that period ends on October 30, 2026, and paragraph 6 allows a late filer to keep operating for up to 30 days. For stand-alone providers already operating, the BCB's Voto 107/2026 states that Resolution 520 set October 2026 as the final month to request authorization.

BCB Resolution 589/2026 bars BCB-authorized institutions, from November 6, 2026, from dealing with providers the BCB has not authorized, subject to stated exceptions. From January 1, 2027, it also requires verifiable proof-of-reserves statements.

The CVM steps in when a token is a security, which Law 14.478 excludes from its scope. The CVM's Guidance Opinion 40 of October 11, 2022, which is guidance rather than binding rule, treats a token as a security when it represents one or is a collective investment contract.

Since February 2, 2026, several virtual asset services count as foreign exchange operations, which only FX-authorized providers may carry out. BCB Resolution 521/2025 added Article 76-A to BCB Resolution 277/2022, the main FX rule.

The FX market now includes international payments or transfers with virtual assets, transfers to or from self-custodied wallets, and trading in "virtual assets referenced in fiat currency," the instrument's term for stablecoins. Paragraph 2 forbids buying or selling virtual assets against payment in foreign currency.

International payments or transfers with a counterparty that is not FX-authorized are capped at US$100,000 for provider companies and US$500,000 for other authorized institutions. These rules bind the provider, not the individual.

Your provider must identify you as the wallet's owner and report larger transfers. Law 9.613/1998, the money laundering statute, lists virtual asset service providers among regulated persons in Article 9, sole paragraph, item XIX.

Under Article 10, they must identify clients and keep records of transactions in "virtual assets" above set limits. Under Article 11, they must report suspicious operations within 24 hours, without telling the client, to the Council for Financial Activities Control (Conselho de Controle de Atividades Financeiras, COAF), created by Article 14.

Under Article 76-A, paragraph 1, item II of Resolution 277, a self-custodied wallet [carteira autocustodiada] is one whose owner holds control of the private key. Paragraph 5 requires the provider to identify that owner.

BCB Resolution 591/2026, in force since October 1, 2026, adds to Circular 3.978/2020 a reporting duty for transfers of virtual assets to or from self-custodied wallets equal to or above the equivalent of US$10,000. The BCB's Voto 107/2026explains that such reports go to COAF automatically.

From January 1, 2027, BCB Resolution 584/2026 requires providers to wait 24 hours after receiving funds before executing transfers to a self-custodied wallet or a foreign entity above US$10,000, per operation or per day.

It created a specific fraud offense and raised money laundering penalties. Article 10 of Law 14.478 added Article 171-A to the Penal Code, titled "fraud using virtual assets, securities or financial assets."

It punishes organizing, offering or intermediating virtual asset operations to obtain an unlawful advantage by deceiving someone, with imprisonment [reclusão] of four to eight years and a fine.

Under Article 1, paragraph 4 of Law 9.613, the money laundering penalty of three to ten years increases by one third to two thirds when the crime is committed "through the use of a virtual asset." Article 11 of Law 14.478 treats companies offering virtual asset services as financial institutions for the crimes against the financial system in Law 7.492/1986.

Gains from selling Bitcoin are taxed as capital gains at progressive rates from 15% to 22.5%, unless the small-sales exemption applies. Under Article 3 of Law 7.713/1988, the gain is the positive difference between the sale value and the acquisition cost.

Article 21 of Law 8.981/1995, as worded by Law 13.259/2016, sets these rates for individuals:

The tax is due by the last business day of the month after the gain, under paragraph 1. Paragraph 2 taxes these gains separately from other income.

Yes, for small sales. Article 22 of Law 9.250/1995 exempts gains on assets whose sale price in the month is equal to or below R$35,000.

The test is the sale price, not the gain. Its sole paragraph adds that when several assets "of the same nature" are sold, the whole set sold in the month counts. On that wording, selling R$36,000 of Bitcoin in one month takes the whole month's gain outside the exemption. Provisional Measure 1.303/2025 would have removed this exemption for virtual assets, but it lapsed.

Article 3, paragraph 3 of Law 7.713 counts any transfer "under any title" and names exchange [permuta] among its examples, which reaches swaps. On the same wording, spending Bitcoin on goods is a transfer. None of the federal instruments cited in this guide sets income tax rules for an individual's mining, staking, lending or airdrops.

Residents pay 15% a year on income from financial investments abroad, declared separately in the annual return, under Articles 2 and 3 of Law 14.754/2023, in effect since January 1, 2024. Article 3, paragraph 1 includes "virtual assets" in that category and counts as income the "variation of the cryptocurrency in relation to the national currency."

Yes, in most cases. The Receita Federal filing manual requires Bitcoin to be declared at original acquisition cost, not market value, when the acquisition cost of the same type of asset is R$5,000 or more.

The "Description" field asks for the quantity held and, for self-custody, the wallet model. This is administrative guidance from the Federal Revenue Service (Receita Federal do Brasil, RFB).

Monthly reporting now runs through the DeCripto [Declaração de Criptoativos], created by Normative Instruction RFB 2.291 of November 14, 2025. The RFB's DeCripto layout manual states that it applies from July 1, 2026, replacing the system of Normative Instruction RFB 1.888/2019.

The manual covers providers in Brazil and individuals or companies that used a foreign provider or no provider at all. It also has a record for transfers from a provider account to a wallet not linked to any provider. A normative instruction binds taxpayers on reporting duties.

They are taxed by the states through the tax on inheritance and gifts (Imposto sobre Transmissão Causa Mortis e Doação, ITCMD). Under the Constitution as amended by Constitutional Amendment 132 of December 20, 2023, the tax on movable assets such as Bitcoin goes to the state where the deceased or donor was domiciled, and it must be progressive by the value of the share or gift.

In São Paulo, Article 16 of State Law 10.705/2000, as amended by Law 10.992/2001, sets a single 4% rate. In Rio de Janeiro, Article 26 of State Law 7.174/2015, as worded by Law 7.786/2017, applies rates from 4% up to 8% for values above 400,000 UFIR-RJ, the state's indexed tax unit.

One bill is pending and one tax measure has lapsed.

Bill PL 4.501/2024, filed in the Chamber of Deputies on November 25, 2024, would create a Sovereign Strategic Bitcoin Reserve. A rapporteur's report recommending approval with a substitute was filed in the Economic Development Committee on February 9, 2026. The item was withdrawn from the agenda on April 8, 2026, and no committee has voted on it.

Provisional Measure 1.303 of June 11, 2025 proposed a 17.5% rate on virtual asset gains, computed quarterly. A provisional measure has immediate force but lapses if Congress does not convert it. A joint committee approved its report on October 7, 2025, according to the Congress record. Congressional Declaratory Act 67/2025 records that its validity ended on October 8, 2025.

BCB Resolutions 584 and 589 are enacted, but parts of them take effect only on November 6, 2026 and January 1, 2027.

Brazilian law allows self-custody and defines it by who controls the private key. The restrictions fall on the provider at the other end of the transfer: owner identification, reports at US$10,000 and, from January 1, 2027, the 24-hour hold. None of the instruments cited here requires an individual to register a wallet with any authority.

The practical risks are real. The annual return asks for the wallet model, and a withdrawal from a Brazilian provider leaves an identification record. Lost keys cannot be restored by any court, and heirs who cannot reach the coins cannot transfer them. Custodial holders gain the platform liability recognized in REsp 2.104.122, but carry counterparty risk.

Foreign nationals in Brazil face the same provider rules as citizens, and residence decides how Bitcoin abroad is taxed. Article 3, paragraph 4 of Law 7.713 applies the tax regardless of the nationality of the source of income.

Law 14.754 applies to "individuals resident in the country," so a foreign national who becomes resident falls under the 15% rule for Bitcoin abroad. The ITCMD follows the domicile of the deceased or donor.

A Brazilian provider must identify a foreign client's self-custodied wallet and may not buy or sell Bitcoin against payment in foreign currency. From November 6, 2026, BCB-authorized institutions may not deal with unauthorized providers, foreign ones included.

Yes. Owning, buying, selling and self-custodying Bitcoin is legal. Law 14.478/2022 treats Bitcoin as a virtual asset and requires prior authorization only for companies that provide virtual asset services to others. Bitcoin is not legal tender, because Law 9.069/1995 gives that status to the real.

No. Article 5 of Law 14.478/2022 defines a provider as a legal entity acting on behalf of third parties. An individual holding Bitcoin for themselves, on an exchange or in self-custody, is not a provider. Authorization from the Banco Central do Brasil applies to the businesses that exchange or hold Bitcoin for clients.

Individuals pay capital gains tax on profits from selling Bitcoin. Article 21 of Law 8.981/1995 sets 15% on gains up to R$5,000,000, then 17.5%, 20% and 22.5% on higher portions. The tax is due by the last business day of the month after the sale, separately from other income.

Yes. Article 22 of Law 9.250/1995 exempts gains on small sales where the sale price in the month is R$35,000 or less. For assets of the same nature, the total sold in the month counts. The threshold applies to sales, not to profit, so one larger sale can make the whole month taxable.

Usually, yes. The Receita Federal manual requires declaring Bitcoin at acquisition cost when the cost of the same type of asset reaches R$5,000. The description must state the quantity and, for self-custody, the wallet model. Separate monthly reporting under the DeCripto applies from July 1, 2026.

Yes, by your provider. BCB Resolution 591/2026 requires reporting of transfers to or from self-custodied wallets of US$10,000 or more since October 1, 2026. Resolution 521/2025 already requires the provider to identify the wallet's owner. Neither rule restricts holding keys yourself.

No. Provisional Measure 1.303/2025 proposed a 17.5% rate on virtual asset gains and the end of the R$35,000 exemption. Congress did not convert it, and Declaratory Act 67/2025 records that its validity ended on October 8, 2025. The 15% to 22.5% brackets still apply.

This article is general information and not legal advice.

Brazil is one of more than 140 countries on The Bitcoin Act's interactive Global Bitcoin Regulatory Map. Compare its rules on legality, self-custody and tax with other countries here: https://thebitcoinact.xyz/bitcoin-legal-map

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