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Itaú becomes first Brazilian bank to formalize crypto trading
Brazil's largest private bank submitted its cryptocurrency notification to regulators ahead of the October 30 deadline.
Key takeaways
- First to comply. Itaú is the first Brazilian bank to complete the notification process under the new digital asset framework, setting the pace for other financial institutions ahead of the October 30 deadline.
- Existing services formalized. The filing brings Itaú's cryptocurrency operations, active since December 2023, under Brazil's new regulatory structure without requiring a separate operating license.
- Broader implications. The move signals how major banks can integrate cryptocurrency services under the new framework, while standalone exchanges face different and more stringent authorization requirements.
What happened
Itaú Unibanco, Brazil's largest private bank, submitted its cryptocurrency trading and custody notification to the country's central bank on October 27, becoming the first Brazilian bank to formally register these services under the new digital asset regulations. The filing came three days ahead of the October 30 deadline established for financial institutions already offering cryptocurrency services. According to reporting from Valor Econômico, the notification covers both cryptocurrency trading and custody operations, which fall under the virtual asset brokerage category established by Brazil's regulator.
Through its Íon investment platform, Itaú currently offers access to 15 digital assets, including Bitcoin, Ethereum, Solana, XRP, and the USDC stablecoin. Customers can begin investing with as little as R$10, with Itaú managing cryptocurrency custody through its own infrastructure. The bank has not publicly disclosed the number of customers using its cryptocurrency platform or the total value of transactions processed through it.
Although the October filing formalizes Itaú's cryptocurrency business under the new framework, the bank has been providing digital asset investments since December 2023, when it initially launched cryptocurrency trading on its investment platform. The service was gradually rolled out to more customers before expanding to all users of the platform in June 2024. Guto Antunes, head of Itaú Digital Assets, noted at the time that the expansion followed customer surveys indicating considerable interest in cryptocurrency investments.
Why it matters
Itaú's compliance demonstrates how established banks operating under existing central bank authorization can integrate cryptocurrency services through a streamlined notification process rather than applying for new licenses. This distinction matters because it creates a pathway for major financial institutions to formalize existing cryptocurrency operations while dedicated cryptocurrency exchanges and service providers face more rigorous authorization requirements. The move also signals to other Brazilian banks that regulatory compliance is achievable before the deadline, potentially influencing their own filing timelines. Additionally, Itaú's swift filing sets expectations for how the Brazilian financial system will operate under the new cryptocurrency framework introduced in February 2026.
Background
Brazil's central bank introduced its new cryptocurrency regulatory framework through a series of resolutions that took effect on February 2, 2026. Under Resolution 520, financial institutions already authorized by the regulator can provide cryptocurrency services through a notification procedure, provided they meet applicable requirements. For institutions already operating when the rules took effect, the central bank established a 270-day transition period ending October 30. The notification must be accompanied by independent technical certification confirming compliance with operational and security standards applicable to virtual asset services. Institutions failing to complete the process by the deadline must discontinue their cryptocurrency services within 30 days.
Dedicated cryptocurrency businesses face a different regulatory path. Exchanges and other virtual asset service providers operating before February 2 must submit formal authorization applications to continue operating under the new rules. According to Crypto.news reporting, a recent analysis found that fewer than 10% of cryptocurrency companies were expected to pursue authorization, with smaller businesses citing concerns over compliance costs and capital requirements. Binance submitted its licensing application ahead of the October 30 deadline, joining several other cryptocurrency businesses seeking central bank approval.
What to watch
Brazil's central bank has established additional compliance dates that will shape the cryptocurrency landscape. Beginning November 6, under Resolution 589, banks and other regulated financial institutions will be prohibited from conducting cryptocurrency transactions with service providers that lack authorization or applicable regulatory exceptions. Further restrictions are scheduled to take effect on January 1, 2027, through reporting procedures to be established by the central bank. These measures tighten oversight of relationships between regulated financial institutions and cryptocurrency service providers, potentially affecting which platforms and services remain accessible through traditional banking channels.
Questions readers ask
Why did Itaú need to file this notification if it was already offering cryptocurrency trading?
Brazil's new regulatory framework, which took effect in February 2026, requires all financial institutions offering cryptocurrency services to formally register and certify compliance with security and operational standards. Although Itaú had been operating since December 2023, the October 30 deadline formalized these existing services under the new rules.
How is Itaú's regulatory path different from cryptocurrency exchanges like Binance?
Established banks like Itaú that already hold central bank authorization can notify regulators and proceed through a streamlined process. Standalone cryptocurrency exchanges must apply for separate authorization on a case-by-case basis, facing more rigorous requirements including independent technical certification and security standards.
What cryptocurrencies can Itaú customers trade?
Itaú currently offers 15 digital assets, including Bitcoin, Ethereum, Solana, XRP, and the USDC stablecoin, with customer investments starting at R$10.
