[Brazil's Central Bank Requires Crypto Service Providers to Undergo Financial Audits, Tightens Licensing Rules] According to Bits.media, Brazil's Central Bank has tightened licensing rules for virtual asset service providers, requiring them to pass an independent financial audit before obtaining operational licenses starting June 1. Audit firms must not only examine the company's financial status but also review its compliance with anti-money laundering and counter-terrorism financing regulations, including whether the platform separates its own funds from client assets, its risk management practices, and employee training. Auditors must be registered with the Brazilian Securities and Exchange Commission. Crypto exchanges, brokerage firms, and custody services applying for licenses for the first time must comply with these requirements from the start of the registration process, while companies with existing licenses must also pass independent audits when renewing their licenses. In 2022, Brazil first established in legislation that virtual asset services would be regulated by the Central Bank, and in November 2025, it created a licensed category for virtual asset service providers.