Brazil central bank bans crypto use in regulated cross-border eFX payment rails, forcing providers to rely on FX transactions and tightening control over stablecoin flows

Brazil’s central bank has issued a new rule that bans the use of crypto assets, including stablecoins and Bitcoin, as settlement rails in Brazil’s regulated electronic foreign exchange (eFX) system for cross-border payments. Under the measure, eFX providers must route the offshore leg of international remittances and purchases exclusively through traditional foreign exchange transactions or non-resident real-denominated accounts, rather than via blockchain-based transfers. The change is formalized in BCB Resolution No. 561, published at the end of April, which updates the regulatory framework for Brazil’s official digital cross-border payments channel covering international transfers, purchases, withdrawals and payments. The rule, which takes effect in October with transition and authorization deadlines running into 2027, specifically targets regulated eFX firms and fintechs that had embedded stablecoin settlement into their back-end flows, including companies like Wise, Nomad and Braza Bank. These providers are no longer allowed to accept Brazilian reais, convert them into USDT, USDC, Bitcoin or other virtual assets, and settle transactions abroad on a blockchain; instead, the settlement leg must occur within the formal FX system. The policy does not ban crypto trading in Brazil: individuals and institutions can still buy, sell, hold and transfer crypto through authorized virtual asset service providers under the existing VASP framework (Resolution BCB No. 521). However, the move significantly tightens central bank control over cross-border payment channels and stablecoin flows, in a market where stablecoins account for the majority of crypto transaction volume. Authorities have framed the measure as an effort to close regulatory loopholes, protect monetary sovereignty and limit “informal dollarization,” while bringing all eFX operators under direct central bank oversight with licensing, segregation of client funds and detailed reporting obligations by 2027.

✨ AI-generated background, compiled from web sources — not editorial content.

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