As Brazil introduces a new regulatory framework for virtual assets, Unblock is taking an important step forward. We have submitted our application to the Central Bank of Brazil for authorization to operate as a Virtual Asset Service Provider (VASP) under the exchange category, covering both (i) virtual asset intermediation and (ii) custody.

As part of the same application, we also expressed our intention to continue operating in the foreign exchange (FX) market, with the goal of connecting traditional FX rails and virtual asset infrastructure within a single regulated framework.

This decision reflects a principle that has guided Unblock from day one: regulation is essential to building trust in stablecoins as a payment method for businesses. We believe that combining regulatory oversight with blockchain technology brings together the security and accountability of the financial system with the transparency, traceability, and continuous settlement enabled by stablecoins.

Submitting our application marks the result of months of preparation and investment in governance, compliance, and anti-money laundering (AML) controls.

Brazil's regulatory timeline

On February 2, 2026, Brazil's new regulatory framework for VASPs came into effect through Central Bank Resolutions BCB Nos. 519, 520, and 521. This framework established the requirements for companies providing virtual asset services in Brazil.

For companies already operating in the market, the authorization process is structured in two phases:

• Phase 1: Covers the applicant's prior operations, the assessment of its controlling shareholders, and compliance with minimum capital and equity requirements. The application deadline is October 30, 2026. The review period can extend to 360 days.

• Phase 2: Following a favorable outcome in Phase 1, this stage involves a more comprehensive assessment of the applicant's operational, financial, technological, and governance structures. The review period can extend to 720 days.

Over the past year, we have worked to prepare Unblock for this new regulatory environment.

Our efforts have included raising over $5m in funding, strengthening our AML and transaction monitoring controls, aligning our accounting practices with Central Bank standards, and working with specialized auditors to reinforce our governance and compliance framework.

These investments reflect our long-term commitment to building a compliant, secure, and reliable payments infrastructure.

Looking Ahead

On October 17, 2026, we submitted our application to the Central Bank of Brazil, marking an important milestone in Unblock's regulatory journey. Our application is now awaiting review under Phase 1 of the authorization process.

Our mission remains unchanged: to build reliable international payments infrastructure that enables Brazilian businesses to move money across borders with greater speed, transparency, and efficiency.