The Advantage of Obtaining a Virtual Asset Service Provider (VASP) License in Brazil

As digital assets and blockchain technology continue to reshape financial services globally, Brazil is emerging as a key player in the South American crypto landscape. With recent regulatory advancements, the Virtual Asset Service Provider (VASP) license offers companies a streamlined path to engage in Brazil’s expanding digital asset market.

Brazil’s Evolving Crypto Landscape

Brazilian authorities have taken significant steps to establish a clear regulatory framework, notably through Law 14,478/2022. This law, enacted in late 2022, creates an organized environment for businesses in the digital asset space, offering legitimacy and security that boost investor confidence. The Brazilian Securities and Exchange Commission (CVM) and the Central Bank oversee the industry, helping ensure compliance and foster growth.

In this regulatory landscape, obtaining a VASP license demonstrates a company’s commitment to transparency and trustworthiness in handling digital assets, positioning it for sustained growth within the region.

Key Benefits of a VASP License in Brazil

• Market Access & Growth Potential
  With over 200 million residents and a rapidly growing tech-savvy population, Brazil’s market presents unmatched opportunities for digital asset services. Holding a VASP license provides access to a burgeoning audience that increasingly favors digital payments and investment options, particularly among Brazil's younger demographic.
• Regulatory Compliance and Credibility
  Operating under a VASP license in Brazil allows companies to legitimize their presence in the market. By meeting regulatory requirements, businesses can enhance customer trust and establish themselves as compliant and reliable players, differentiating from unlicensed competitors.
• Streamlined Cross-Border Transactions
  Brazil’s proactive stance on digital assets facilitates smoother cross-border transactions. A VASP license enables companies to benefit from a clear legal framework, making it easier to operate internationally. Licensed VASPs can conduct business seamlessly with other regulated entities, boosting growth opportunities and enhancing operational efficiency.
• Favorable Tax Treatment and Financial Incentives
  VASPs in Brazil can access certain tax incentives, including lower income tax rates on export services, which can support companies focused on cross-border transactions. Additionally, Brazil’s tax framework around cryptocurrency transactions remains attractive compared to other major markets in Latin America, promoting a competitive edge for licensed businesses.
• Enhanced Customer Confidence & Security
  Given recent security incidents in unregulated crypto markets worldwide, the VASP license in Brazil reinforces a commitment to investor safety. Brazil’s framework includes requirements around anti-money laundering (AML) and cybersecurity, which serve to protect consumers, mitigate risks, and build public trust in the licensed VASP.

As Brazil positions itself as a leader in the digital asset sector, acquiring a VASP license could be a key strategic move for companies aiming to expand in South America. With clear regulations, favorable market conditions, and growing demand for digital assets, Brazil offers an environment ripe for innovation and growth.

The Strategic Value of an Electronic Money Institution (EMI) License in Brazil

As Brazil continues to position itself as a leading fintech hub in Latin America, the Electronic Money Institution (EMI) license has become increasingly valuable for businesses seeking to offer electronic payment services in this high-potential market. With its large, tech-savvy population, an EMI license not only grants access to a vibrant financial ecosystem but also provides substantial regulatory and operational benefits for companies in the digital finance space.

An EMI license in Brazil, regulated by the Central Bank of Brazil (BCB), is designed to empower businesses to provide electronic money issuance, prepaid cards, payment processing, and digital wallet services. Since Brazil’s regulatory framework is favorable to financial innovation, the EMI license serves as an official stamp of legitimacy and trust, enhancing a company’s reputation and accessibility in the financial market.

Key Advantages of Holding an EMI License in Brazil

• Broad Market Access
  Brazil’s large population—over 210 million people—includes one of the world’s most enthusiastic groups of digital banking users. With an EMI license, companies can offer a range of services, from digital wallets to payment processing, meeting the country’s growing demand for financial technology. This license is particularly valuable for companies targeting Brazil’s rapidly increasing number of unbanked and underbanked citizens, who now rely on digital solutions.
• Compliance and Enhanced Credibility
  The EMI license subjects businesses to the Central Bank’s regulatory framework, which emphasizes financial security and transparency. Licensed institutions can gain consumer trust by aligning with rigorous standards in anti-money laundering (AML) and cybersecurity, ensuring a secure environment that appeals to both customers and business partners.
• Tax Benefits for Financial Institutions
  While Brazil has high corporate tax rates—34% on average—EMIs can access tax reductions on income generated from export services and other financial incentives. These benefits are part of Brazil’s strategic focus on boosting its fintech sector and reinforcing its attractiveness as a regional financial hub.
• Operational Flexibility for International Transactions
  An EMI license provides flexibility in currency exchange and international fund transfers, allowing licensed institutions to conduct cross-border transactions with fewer regulatory obstacles. This is especially advantageous for businesses facilitating international remittances and currency conversions, which are essential in a globally interconnected market.
• Increased Integration with Brazil’s Financial System
  Licensed EMIs gain access to Brazil’s financial infrastructure, including PIX, the Central Bank’s instant payment platform. This integration offers a seamless experience for users and positions licensed institutions competitively among traditional banks and fintechs. PIX, which operates 24/7, allows EMIs to facilitate instant transfers, broadening service offerings and enhancing customer satisfaction.

As Brazil establishes itself as a fintech leader, acquiring an EMI license could be a transformative step for companies seeking to offer electronic money and payment services in South America. The EMI license not only facilitates entry into Brazil’s expansive financial market but also brings a host of regulatory and operational advantages. With ReadyCorp’s expertise, businesses can navigate the licensing process seamlessly and leverage Brazil’s dynamic digital finance ecosystem.

We offer a payment schedule:

50% within 15 days of the acceptance of the proposal

25% once company is created

25% upon completion of project

We offer a payment schedule:

50% within 15 days of the acceptance of the proposal

25% before start of Phase 3

25% before start of Phase 4

We offer a payment schedule:

50% within 15 days of the acceptance of the proposal

25% before start of Phase 3

25% before start of Phase 4