Brazil's Central Bank has fined Banco Topázio $3.15 million and banned it from conducting over-the-counter foreign exchange transactions for crypto assets for two years. The decision, announced on May 13, follows findings of inadequate customer due diligence and anti-money laundering controls. Banco Topázio reportedly processed $1.7 billion in related transactions from October 2020 to September 2021 without proper reporting to Coaf. Regulators highlighted the bank's failure to register customers and report suspicious activities, prompting the sanctions. Officials indicated that similar measures might be enforced on other institutions involved in cryptocurrency activities if compliance issues persist.