Itaú Unibanco, Brazil’s largest private bank, has become the country’s first bank to formalize its cryptocurrency trading and custody operations under new digital-asset rules, submitting a notification to the central bank on Tuesday ahead of an Oct. 30 compliance deadline.
The submission was reported by CoinDesk, citing Brazilian news outlet Valor Econômico. It brings an existing service into the new regulatory framework rather than marking the launch of Itaú’s crypto business.
The bank has offered cryptocurrency services since December 2023. Its website lists 15 cryptoassets, including bitcoin, ether and the dollar-pegged stablecoin USDC. Its combination of trading and custody falls within the framework’s brokerage category.
The rules distinguish between institutions that already hold central bank authorization and dedicated virtual-asset service providers. Banks can follow a notification process to offer crypto services, while dedicated providers must apply for operating authorization.
The central bank’s Resolution 520 took effect on Feb. 2, giving eligible financial institutions already operating in crypto 270 days to notify the regulator. Their submissions must include an independent technical certification demonstrating compliance. Institutions that miss the deadline must stop providing crypto services within 30 days.
The Oct. 30 deadline also applies to authorization applications from dedicated crypto providers operating when the rules took effect. Brazilian exchange Mercado Bitcoin has said it is seeking authorization to operate as a virtual-asset brokerage.
A separate deadline governs relationships with unauthorized providers. In September, the central bank postponed to Nov. 6 the date from which banks and other authorized institutions are barred from conducting crypto business with those providers.
Analysis
Why This Matters
- The framework creates different compliance routes for established banks and dedicated crypto providers, shaping how each can continue serving customers.
- Missing the notification deadline requires affected institutions to stop crypto services within 30 days, making compliance relevant to service continuity.
Background
Crypto trading and custody are distinct services: trading allows customers to buy and sell assets, while custody involves safeguarding them. Itaú offers both, placing its operation in the brokerage category under Brazil’s framework. The notification covers a business already operating since December 2023.
What to Watch
- Notifications and authorization applications submitted by the Oct. 30 deadline.
- Whether institutions that miss the deadline halt services within the required 30 days.
- How banks and other authorized institutions adjust provider relationships as the Nov. 6 restriction takes effect.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedItaú is the first bank in Brazil to formalize its crypto operations under the new rules.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Itaú Unibanco, Brazil’s largest private bank, formalized its cryptocurrency trading and custody operations under the country’s new digital-asset rules, becoming the first bank in the country to do so.”
- SupportedItaú notified the central bank on Tuesday ahead of an Oct. 30 deadline.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Itaú Unibanco notified Brazil’s central bank of its crypto trading and custody operations on Tuesday, ahead of an Oct. 30 deadline.”
- SupportedThe story says CoinDesk reported the submission, citing Valor Econômico.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The lender submitted its notification to the central bank on Tuesday, ahead of an Oct. 30 compliance deadline, according to local news outlet Valor Econômico”
- SupportedDedicated virtual-asset service providers must apply for operating authorization, while authorized banks can use a notification process.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The regulatory framework allows banks already authorized by the central bank to follow a notification process for offering crypto services. Dedicated virtual-asset service providers (VASPs), in contrast, must apply for operating authorization.”
- SupportedItaú’s crypto service has operated since December 2023, so the filing does not mark its launch.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “It has not disclosed customer numbers or trading volumes for the service, which started in December 2023 .”
- SupportedItaú’s website lists 15 cryptoassets, including bitcoin, ether and USDC.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Itaú Unibanco offers 15 cryptoassets, including bitcoin BTC$84,459.46 , ether ETH$2,490.55 and the dollar-pegged stablecoin USDC, according to its website .”
- SupportedItaú’s combination of trading and custody falls within the rules’ brokerage category.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Itaú’s combination of trading and custody corresponds to the brokerage category under the rules.”
- SupportedResolution 520 took effect on Feb. 2 and gave eligible financial institutions already active in crypto 270 days to notify the regulator.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “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.”
- SupportedSubmissions must include an independent technical certification demonstrating compliance.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Submissions must include an independent technical certification showing they meet its requirements.”
- SupportedInstitutions that miss the deadline must stop providing crypto services within 30 days.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Those that miss the deadline must stop providing crypto services within 30 days.”
- SupportedThe Oct. 30 deadline also applies to authorization applications from dedicated crypto providers already operating when the rules took effect.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The same deadline applies to authorization applications from dedicated crypto providers already operating when the rules took effect.”
- SupportedThe central bank postponed to Nov. 6 the date when banks and other authorized institutions are barred from doing crypto business with unauthorized providers.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “In September, the central bank pushed to Nov. 6 the date from which banks and other authorized institutions are barred from doing crypto business with unauthorized providers.”
