Itaú Unibanco becomes first Brazilian bank to formalize crypto brokerage under new central bank rules

Itaú Unibanco, the largest private bank in Brazil, has formalized its cryptocurrency trading and custody business under the country's new digital-asset framework. According to local outlet Valor Econômico, it is the first bank in the country to complete the step.

The lender filed its notification with the central bank on Tuesday, ahead of an Oct. 30 compliance deadline. The framework lets banks that already hold central bank authorization use a notification process to offer crypto services. Dedicated virtual-asset service providers, by contrast, must apply for operating authorization. Itaú's mix of trading and custody places it in the brokerage category defined by the rules.

According to the bank's website, it offers 15 cryptoassets, among them bitcoin, ether and the dollar-pegged stablecoin USDC. The service launched in December 2023. Itaú has not published customer numbers or trading volumes for it.

The central bank's Resolution 520 took effect on Feb. 2 and gave eligible financial institutions already active in crypto 270 days to notify the regulator. Each submission must include an independent technical certification showing that the institution meets the requirements. Institutions that miss the deadline must stop providing crypto services within 30 days.

The same deadline applies to authorization applications from dedicated crypto providers that were already operating when the rules came into force. Brazilian exchange Mercado Bitcoin has said it is seeking authorization to operate as a virtual-asset brokerage.

Separately, the central bank moved a related date back in September. Banks and other authorized institutions are now barred from doing crypto business with unauthorized providers from Nov. 6.