Woofun AI reports that the Central Bank of Brazil issued Resolution No. 580/2026, designating virtual asset service providers and their parent groups as Category 3 institutions. This classification subjects these entities to regulatory standards identical to those imposed on securities brokers, distributors, and foreign exchange dealers.

Effective January 1, 2027, these institutions must adhere to prudential mandates including risk management protocols, capital adequacy requirements, and information disclosure policies. By June 30, 2028, all VASPs will be reclassified into Division 4, thereby eliminating eligibility for the simplified compliance framework reserved for low-risk Division 5 entities.