The Brazilian central bank requires independent auditing of virtual asset service providers before licensing

According to Bits.media, the Brazilian central bank has required virtual asset service providers to undergo independent financial audits before applying for operating licenses since June 1st. The audit should cover financial condition, compliance with anti money laundering and counter-terrorism financing, separation of self owned funds from customer assets, risk management, and employee training. Auditors must register with the Brazilian Securities and Exchange Commission, and both initial applications and renewals must comply with this requirement. Brazil legislated in 2022 to clarify that virtual asset services are regulated by the central bank, and plans to establish a category of licensed service providers by 2025.