Brazil's Central Bank Prohibits the Use of Crypto Assets for Settlements within 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, 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. These companies must apply for authorization from the central bank by May 31, 2027, if they wish to continue offering services. This move does not constitute a blanket ban on crypto asset transfers within Brazil but is intended to confine cross-border payment flows within the regulated foreign exchange framework.

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