The Central Bank of Brazil plans to advance regulation of institutional VASP (crypto infrastructure providers for institutional services) before 2027. The deputy head of the regulatory department stated that relevant rules will be promoted during the 2026-2027 period, and the local operation authorization standards have been finalized. Approved institutions must report their business activities within 270 days. Meanwhile, the Brazilian Federal Revenue Service is reportedly preparing to introduce a controversial measure to impose a 3.5% tax on stablecoin fund flows. This move aims to close the policy loophole that previously allowed individuals and institutions to use stablecoins as an alternative to the US dollar for payments and cross-border remittances. (Bitcoincom)