Brazil Central Bank Bans the Use of Crypto Assets for Settlement in Regulated Cross-Border Payment Channels

Odaily Planet Daily News: The Central Bank of Brazil (BCB) has issued Resolution No. 561, prohibiting the use of virtual assets for settlements in regulated eFX international payment and transfer services. The resolution stipulates that payments and receipts between eFX service providers and their overseas counterparties must be conducted solely through foreign exchange transactions or non-resident Brazilian Real accounts, with the use of virtual assets strictly forbidden.

This regulation also applies to eFX providers in a transitional period that have not yet been included in the approved category. If these companies wish to continue offering services, they must apply for authorization from the central bank by May 31, 2027. This move does not constitute a comprehensive ban on crypto asset transfers within Brazil, but aims to confine cross-border payment flows within regulated foreign exchange channels.

The Central Bank of Brazil stated that this decision is driven by the surge in stablecoin usage for cross-border payments, raising concerns about money laundering, taxation, and monetary sovereignty. (Cointelegraph)