Brazil Blocks Crypto Use in Cross-Border Payments Under New Rule

• Brazil bans crypto in regulated cross-border payments, requiring all transactions to use traditional FX systems under new rules.
• Firms using stablecoins must adjust operations, with compliance deadlines set for October 2026 and authorization by May 2027.
• Crypto trading remains allowed domestically, but stricter oversight expands AML rules and reporting requirements for providers.

Brazil’s central bank moved to restrict crypto use in international payments under new foreign exchange rules announced April 30. According to Banco Central do Brasil, Resolution No. 561 bars stablecoins, Bitcoin, and similar assets from regulated cross-border settlements. The measure takes effect October 1 and targets payment flows processed through the country’s eFX framework.

Cross-Border Payment Structure

Notably, the regulation requires all cross-border payments to pass through traditional foreign exchange operations. Providers must also use Brazilian real accounts held by nonresident counterparties. According to Banco Central do Brasil, this change removes digital assets from settlement processes within the regulated system.

However, the rule does not prohibit crypto activity in Brazil. Investors and firms can still buy, sell, and hold digital assets through authorized service providers. The restriction applies specifically to how regulated international payments are processed under the eFX model.

Impact on Firms and Compliance Deadlines

Meanwhile, the update directly affects firms that relied on stablecoins for cross-border transfers. Companies such as Nomad and Braza Bank fall within this category. These firms must now adjust settlement methods to comply with the revised framework.

However, companies without authorization can continue operations temporarily. They must apply for approval by May 31, 2027, according to the central bank. In addition, authorized institutions must update their registration records by October 30, 2026.

The regulation also introduces operational requirements for providers. These include segregated accounts for client funds and monthly reporting through the foreign exchange system. Firms must also maintain transaction records for ten years.

Broader Oversight and Market Context

Furthermore, the measure builds on earlier regulatory steps targeting crypto activity. In November 2025, Brazil required virtual asset service providers to obtain operating authorization. These rules extended anti-money laundering and governance standards to the sector.

Notably, stablecoins have driven a large share of crypto transactions in Brazil. According to central bank data, crypto activity reached 227 billion reais in the first half of 2025. USDT accounted for about two-thirds of that volume, while Bitcoin represented roughly 11%.

Similarly, Resolution 561 expands eFX usage for investment-related transfers. These transactions carry a limit of $10,000 per operation under the updated framework.

The post Brazil Blocks Crypto Use in Cross-Border Payments Under New Rule appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.