The Central Bank of Brazil has fined Banco Topázio approximately USD 3.15 million and banned it from conducting over-the-counter foreign exchange services related to crypto assets for two years.

According to Times Brasil, Brazil’s Central Bank’s Administrative Sanctions Procedure Decision Committee has fined Banco Topázio approximately USD 3.15 million and banned it from conducting over-the-counter foreign exchange operations for virtual asset transactions for the next two years. Regulators stated that between October 2020 and September 2021, Banco Topázio processed around USD 1.7 billion in related transactions while failing to adequately verify customer eligibility, maintain proper customer records, and implement anti-money laundering (AML) and countering the financing of terrorism (CFT) controls—and further failed to report suspicious transactions to COAF. Officials from Brazil’s Central Bank indicated that similar restrictions could also be applied in the future to other institutions engaged in cryptocurrency-related activities.