The Central Bank of Brazil has issued its first formal rejection of a Prestadora de Serviços de Ativos Virtuais, or PSAV, license application, directly affecting Higherway Tech Soluções, commercially known as Higher Global. The decision was published in the Official Gazette on Monday, September 28, following an order signed on August 25, 2026. The denial prevents the São Paulo-based company from offering virtual asset services or any other activities that depend on central bank approval.
First Formal Denial in a New Regulatory Era
PSAV is the Brazilian regulator's designation for companies that trade, intermediate, or custody virtual assets for third parties. It covers exchanges, custodians, and intermediaries. Since February 2026, these firms have needed formal authorization to operate under continuous supervision by the central bank, following the same model applied to financial institutions.
Application Deadlines and Current Status
Companies seeking PSAV authorization must file their requests by October 30, 2026. Until now, the central bank had only placed applicants under review without delivering a formal denial. Higher Global stated that it was among the first companies to submit a request, having filed on January 30, 2026, when key requirements were still being detailed.
Higher Global's Business Profile
Higherway Tech Soluções is a Brazilian financial technology firm headquartered in São Paulo, founded in 2020 with share capital of R$1.5 million. The company operates in global payments, corporate foreign exchange, and credit intermediation, and it acts as a correspondent for financial institutions and as a foreign exchange correspondent. Its registry lists additional activities such as business management consulting, management of nonfinancial intangible assets, and general agency services, with Bruno Riscado Dias and Be Higher Participações appearing as legal representatives.
Regulatory Evolution During the Review
Higher Global noted that many prudential, operational, and informational requirements were still being defined when it filed its application. After the submission, Resolution BCB No. 580, published on July 1, 2026, classified virtual asset service providers as Type 3 institutions, barred their inclusion in Segment 5, and imposed prudential rules. This month, Resolution BCB No. 589 expanded reporting obligations to include accounting balances, custody of virtual assets, proof of reserves, and staking operations.
Company Response and Next Steps
The central bank did not disclose the reason for the rejection, and the company said it is reviewing the decision with legal and regulatory advisors. Higher Global considers it premature to anticipate any specific measure before concluding its technical assessment. The company did not rule out a request for review or other administrative and judicial actions.
Commitment to the Virtual Asset Segment
Higher Global emphasized that the denial relates only to the request submitted to the central bank and does not by itself represent a decision to abandon virtual assets. The company said it remains committed to responsible operations, client protection, and full compliance with applicable regulation. It is evaluating necessary adjustments and studying strategic and regulatory alternatives, with no current definition on operating in other countries or ending crypto activities in Brazil.
Broader Market Reorganization
Seven companies remain in the approval process for a PSAV license, according to Finsiders Brasil, and Matera expects that number to reach ten. They are Transfero, Mazzera, PFPAY, Masterpay, W Brasil Comércio, Onda Finance, and Wynx Exchange. The negative decision comes amid a broader reorganization that has seen Lemon, Digitra.com, Coinext, NovaDAX, and Bitnuvem announce exits or operational redesigns in Brazil.
The central bank's first PSAV rejection marks an important precedent for Brazil's virtual asset sector as formal supervision takes hold. Higher Global's response will be closely watched by other applicants that are still adapting to evolving capital, operational, and reporting requirements. With the October 30 filing deadline ahead, the case highlights the regulatory pressure now shaping the country's crypto market.