Brazil’s central bank has introduced a sweeping set of regulatory reforms aimed at strengthening oversight of fintechs and tightening safeguards against financial crime. The move marks one of the most significant overhauls of the country’s financial supervision framework in recent years, reflecting a shift from growth-driven deregulation toward a more risk-conscious model.
Under the new rules, fintechs and smaller banking entities will face higher capital requirements, with minimum thresholds rising from 5.2 billion reais to 9.1 billion reais by 2028. The central bank will also calculate capital needs based on the nature of financial activity rather than company classification, bringing the regulatory approach closer to that applied to traditional banks.
The reforms come in response to recent investigations into money laundering and fraudulent activity involving digital payment platforms. Fintechs whose accounts cannot trace the identity of underlying users will be required to suspend or close such accounts, a measure intended to strengthen accountability within the payments ecosystem.
Firms using “bank” in their name will also face additional supervisory conditions and capital buffers. For Brazil’s financial sector, this marks a decisive step toward aligning local compliance standards with international norms around governance, risk management, and transparency.
While the rules are expected to stabilise the market, they will also challenge smaller fintechs reliant on low operating costs and lighter oversight. Analysts anticipate a wave of consolidation as firms merge or exit to meet the new capital thresholds, while traditional banks could benefit from a more level regulatory playing field.
The central bank’s reforms signal Brazil’s transition from a fintech boom to a maturity phase, where innovation, security, and systemic resilience are now expected to coexist.
