Itaú Formalizes Crypto Brokerage Under Brazil Rules
Itaú Unibanco has notified Brazil’s central bank of its cryptocurrency trading and custody operations, becoming the first bank in the country to formalize such activity under the new digital-asset framework. The filing places an existing service, rather than a newly announced product, into the regulatory process established for institutions already authorized to operate in Brazil’s financial system.
CoinDesk reported that Itaú submitted its notification on Tuesday, October 27, ahead of the October 30 compliance deadline. The bank offers 15 cryptoassets, including BTC, ETH and USDC, through a service that began in December 2023.
What happened
Itaú Unibanco notified the Central Bank of Brazil that it conducts crypto trading and custody operations. According to CoinDesk, the combination of those activities corresponds to the brokerage category under the country’s new rules.
Crypto.news likewise reported that Itaú became the first Brazilian bank to complete the notification process for cryptocurrency trading and custody under the new regulations. Both CoinDesk and Crypto.news described Itaú as Brazil’s largest private bank.
The notification route is available to banks and other institutions that already hold authorization from the central bank. CoinDesk reported that these eligible institutions can notify the regulator of their crypto activity, while dedicated virtual-asset service providers must seek operating authorization instead.
Itaú’s crypto offering includes 15 assets. CoinDesk named BTC, ETH and USDC among them, while Crypto.news referred to Bitcoin, Ethereum and USDC. Neither outlet reported a public breakdown of the complete asset list.
The bank has also not disclosed how many customers use its crypto platform or the trading volumes processed through it. CoinDesk said Itaú has not released customer numbers or trading volumes, and Crypto.news similarly reported that the bank has not publicly identified user numbers or the total value of transactions handled by the service.
Why it matters
The filing is significant because it is the first bank notification under Brazil’s new structure for crypto services, according to CoinDesk. It provides an early example of how a bank with an existing digital-asset product can bring that product within the formal regulatory pathway.
For customers, the development does not indicate that Itaú has expanded the number of assets it offers or announced new service features. The reported change concerns the formal status of its trading and custody operations under the new rules.
The distinction between notification and authorization is also central. CoinDesk reported that banks already authorized to conduct financial activities use the notification process, whereas specialized virtual-asset providers face a separate authorization requirement. That creates different regulatory routes depending on the nature and existing status of the institution.
Itaú’s case also connects two activities often treated separately in digital-asset markets. Trading enables customers to buy and sell supported assets, while custody concerns the holding and safeguarding of those assets. Under the Brazilian framework described by CoinDesk, offering both places the service in the brokerage category.
The absence of public data on users and volumes limits what can be concluded about the scale of Itaú’s crypto business. The service has been available since December 2023, but the available reporting does not quantify its adoption or transaction activity.
Background and context
Brazil’s framework under Central Bank Resolution 520 took effect on February 2, according to CoinDesk. Eligible institutions that were already active in crypto were given a 270-day period to notify the regulator and provide independent technical certification.
The transition ends on October 30. CoinDesk reported that institutions that miss the deadline must stop providing crypto services within 30 days.
The framework separates already-authorized banks from dedicated crypto firms. Existing regulated financial institutions can submit notifications, while firms established specifically as virtual-asset service providers must apply for operating authorization. Itaú’s filing brings its pre-existing trading and custody service for 15 assets under this formal supervisory structure.
Mercado Bitcoin, a Brazilian exchange, has said it is seeking authorization as a virtual-asset brokerage, CoinDesk reported. Its position illustrates the separate route available to a specialized provider rather than an already-authorized bank.
CoinDesk also reported that the central bank moved the relevant date to November 6 for a restriction affecting authorized institutions’ crypto business with unauthorized providers. Separate reporting rules are set to take effect on January 1, 2027.
What to watch
The immediate question is whether other banks submit notifications before the October 30 deadline. Itaú is the first bank reported to have done so, but the available reports do not identify other banks that have completed the process.
It will also be important to follow the authorization process for dedicated virtual-asset providers such as Mercado Bitcoin. The notification route used by Itaú is not available to every type of crypto business.
Other open questions include whether Itaú publishes data on customer adoption, trading volumes or the composition of its 15-asset offering. Neither CoinDesk nor Crypto.news reported such disclosures.
Finally, the implementation of the November 6 restriction on dealings with unauthorized providers and the January 1, 2027 reporting rules will show how the wider framework operates beyond the initial transition deadline.
