Brazil Central Bank prohibits regulated cross-border payment channels from using crypto assets for settlement

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

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

The Central Bank of Brazil stated that this is due to the surge in the use of stablecoins in cross-border payments, which has raised concerns about money laundering, taxation, and monetary sovereignty. (Cointelegraph)