Written by On 13 September 2024, Brazil’s Central Bank officially published Resolution BCB 410/2024. The Resolution amends Resolution 278/2022, which is the key regulation addressing foreign capital, foreign loans and foreign direct investments in Brazil.
Resolution BCB 410/2024 clearly states that all transactions involving the payment of issued shares by, and sales to, non-residents (inbound transfers) using virtual assets must be registered on the Central Bank database. The same will apply to the payment of dividends, interest over own capital, capital returns and distributions following liquidations to non-foreigners (outbound transfers).
The changes were made to prevent arguments over whether virtual assets (especially virtual currency) were to be considered neither “tangibles” nor “intangibles” under the existing wording of Resolution 278/2022.
Note that Brazilian law still does not allow for shares be paid by the provision of services.
Transactions that are not automatically registered under the Central Bank’s SCE-IED system (the database used for the registration of information relating to foreign direct investments) will need to be registered by the person appointed by the non-resident party for this purpose.
Resolution BCB 410/2024 will come into force on 1 October 2024.
Do you have any questions?
Contact us if you would like further information. Our firm is ready to assist you.
Brazil Brazilian Central Bank Brazilian shares Central Bank of Brazil Compliance Corporate law FDI Foreign Direct Investment Rules for FDI in Brazil Virtual assets Virtual currency
Last modified: September 24, 2024
The site is managed by Fabiano Deffenti, a lawyer admitted to practise in Brazil and Australia, enrolled as a barrister and solicitor in New Zealand and licensed as an attorney-at-law in New York.
