Brazil's central bank has enacted Resolution No. 580/2026, categorizing virtual asset service providers as Category 3 institutions, aligning them with securities brokerage firms, securities distributors, and foreign exchange brokers. Effective January 1, 2027, crypto companies will adhere to the same regulatory standards as these traditional financial entities, including risk management, capital requirements, and information disclosure policies. This regulatory shift is based on the principle of "same activity, same risk, same regulation," reflecting the functional similarities between crypto firms and securities brokers. Additionally, by June 30, 2028, all virtual asset service providers will be reclassified as Category 4 institutions, excluding them from the simplified compliance options available to Category 5 low-risk institutions. This move underscores Brazil's commitment to integrating crypto firms into its broader financial regulatory framework.