Month: January 2026

Global startups no longer operate under traditional business models. Today, they tokenize assets, raise capital through SAFTs, operate DAOs, process cross-border payments in stablecoins, and build blockchain-based infrastructure. All of this while navigating regulatory frameworks that evolve constantly in Brazil, Europe (MiCA), and the United States (CLARITY Act).

In this environment, scaling without a solid legal strategy is no longer an option.

Virtual asset regulation in Brazil

In Brazil, the provision of services and the offering of products involving virtual assets were formally regulated by Law No. 14,478/2022. However, this framework became fully effective with the issuance of Central Bank Resolutions No. 519, 520, and 521, published in November 2025.

These regulations established specific rules for companies intending to operate with virtual asset services, following a broad public consultation process (Public Consultations No. 97/2023 and No. 109, 110, and 111/2024).

The resolutions enter into force on February 2, 2026, and companies already operating in Brazil will have up to 270 days to comply with the new requirements.

Authorization procedures and BCB Normative Instruction No. 701

On January 22, 2026, the Central Bank of Brazil issued Normative Instruction No. 701, which details the technical and legal procedures required for authorization as a Virtual Asset Service Provider (VASP).

This regulation reinforces key pillars prioritized by Brazilian authorities, particularly:

• Operational transparency
• User protection
• Safeguarding the National Financial System

Key requirements include:

• Proof of reserves
• Asset segregation
• Adequate governance and management structures
• Clear definition of the products and services offered

This represents a significant step forward in the regulatory maturity of Brazil’s virtual asset market.

The future of business is global and decentralized

Lawi already operates across multiple jurisdictions, including Brazil, Argentina, the United States, and Europe (Spain), with strong expertise in:

• International soft landing strategies
• Legal structuring for startups and tech companies
• Global intellectual property protection

The Web3 ecosystem fits naturally into this global context, encompassing a wide range of business models and services, such as:

• Real-world asset tokenization (RWA)
• Decentralized finance infrastructure (DeFi)
• New governance models (DAOs)
• Creator economy solutions (NFTs and on-chain royalties)
• Instant global payments

All of this requires legal counsel that truly understands technology, regulation, and innovation-driven business models.

In practice, this means structuring SAFTs in the United States, aligning crypto exchanges with Brazilian Central Bank regulations, registering DeFi protocol trademarks across multiple jurisdictions, and advising on receivables tokenization projects in Brazil.

Lawi Draper House: where ideas become real projects

Our headquarters in Rio de Janeiro, Lawi Draper House, has become a hub for creators, investors, regulators, and builders. Through strategic events and curated gatherings, we support the transformation of ideas into real, legally structured projects.

Our goal is to be the meeting point for those building the decentralized future.

Connect with Lawi

If you are a Web3 founder, work in fintech, or want to better understand how regulation and technology intersect, let’s talk.

Lawi is building the future of legal services for global entrepreneurs.
And the future is decentralized.

Expanding into the European market is not a destination; it is the most ambitious growth strategy a founder can adopt. Many Latin American ventures have already taken the step toward Europe with great success. Leading companies such as Platzi (Colombia), Creditas (Brazil), or Pulpomatic (Mexico) have strategically chosen Spain as their base for expansion.

This move is not accidental. Spain and Portugal are consolidating as preferred gateways thanks to their cultural affinity and, crucially, a constantly optimizing legal framework. Beyond success stories, capital flow is the best indicator: cumulative LATAM investments in Spain have grown significantly, exceeding €66.8 billion in recent years (Source: ICEX Spain Trade and Investment). This ecosystem is ready to welcome your startup’s talent and innovation.

Entity Type and Administration: The Key First Step

Before launching your operation, the decision regarding the type of company and administrative structure is the foundation that will define tax and legal efficiency in the future.

It is essential to incorporate a suitable legal vehicle (for example, a Limited Liability Company – SL in Spain). Furthermore, the decision regarding the tax residency of the managing partners is critical, as it directly influences their personal tax burden and the company’s obligations.

• Tax Planning: Determining residency and structuring administration correctly is essential to take advantage of Double Taxation Avoidance Agreements (DTAs) that Spain has with most Latin American countries, allowing you to avoid double taxation on the same income.

These initial decisions are the basis for structuring your company and avoiding problems that could hinder growth once you have gained traction in the European market.

Essential Tips for Startup Internationalization: The Legal Checklist

A soft landing in Europe must be a strategic move, not a bureaucratic act. Here are the questions you must answer to ensure a solid and profitable expansion, taking advantage of the Startup Law framework:

1. How can I maximize my initial cash flow? (Capital and Taxation)

• Leverage Minimum Investment: Did you know you can start incorporating your Limited Company in Madrid with an initial share capital of 1 euro? This reduces initial risk and maximizes capital available for operations.
• Direct Tax Benefit: Are you aware of the tax benefits of the Startup Law? This law allows your company to be taxed at a reduced rate of 15% (compared to the general 25%) for Corporate Income Tax during the first four years with profits.

2. How do I shield my most valuable asset? (Intellectual Property and Regulation)

• Trademark Protection in the EU: Have you registered your Intellectual Property as a European Union Trade Mark (EUTM)? Without this registration, your brand is not legally protected in the 27 EU countries, putting your expansion at risk.
• Sectoral Compliance: Which specific sectoral regulations (GDPR, Fintech, HealthTech, etc.) apply to your business model? A preventive legal analysis will avoid costly fines and operational standstills.

3. What is my talent and market strategy?

• Do you plan to hire local talent from the start? Spain offers Entrepreneur Visas that facilitate residency for the founding and management team.
• Have you defined whether your initial target market is only Spain or if you will immediately target other countries in the Schengen Area?
• You can start without having to move to Europe by appointing a non-resident administrator.

Initial Steps to Incorprate a Company in Madrid

From the Spanish capital, the basic steps to create a Limited Company (SL) are streamlined thanks to the Startup Law:

1. Request the negative name certificate from the Mercantile Registry.
2. Open a bank account and deposit the minimum share capital (€1 or the amount you decide).
3. Draft and sign the bylaws before a notary.
4. Obtain the provisional Tax Identification Number (NIF) and register the company.
5. Register for tax filings and apply for necessary licenses.

Madrid offers a highly favorable ecosystem, with access to investors and accelerators. Beyond the capital, Spain has a framework that simplifies taxation and offers tax regimes that can make your operation more efficient.

If you are thinking about taking this leap, having legal and strategic clarity from the start can make all the difference. If at any point you would like to talk or need help understanding how to begin, do not hesitate to seek specialized support. Sometimes, with the right guidance, moving forward in Europe can be simpler and less complicated than it seems.