Brazil’s central bank has barred virtual assets from settlement inside regulated international payment rails.
Summary
- Brazil’s central bank banned virtual assets from settlement inside regulated eFX cross-border payment rails.
- The new rule does not ban crypto transfers, but limits use inside supervised payment channels.
- Brazil is tightening oversight as stablecoins make up about 90% of reported crypto flows.
The rule applies to eFX services, which cover certain cross-border payments and transfers. Banco Central do Brasil published Resolution BCB No. 561 on Thursday. The measure updates rules for payment providers operating under the country’s foreign exchange framework.
The new rule says payments or receipts between an eFX provider and a foreign counterparty must use foreign exchange transactions. Providers may also use movement in a non-resident Brazilian real account.
The resolution bans the use of virtual assets for those payments and receipts. This means crypto and stablecoins cannot settle transactions inside the regulated eFX channel.
Rule is not a full crypto ban
The measure does not ban crypto transfers across Brazil. It only blocks crypto settlement within the supervised eFX framework.
Transitional rules also apply to firms not yet listed as approved eFX providers. These companies may continue operating if they seek central bank approval by May 31, 2027.
However, they must follow the same settlement rule. Their payments and receipts cannot use virtual assets.
Stablecoin activity draws closer review
Brazil has increased oversight of crypto-linked payment flows as stablecoin use grows. The central bank has been adding virtual assets to its financial and foreign exchange rulebook.
In November 2025, regulators set new rules for virtual asset service providers. These included authorization requirements and rules for crypto services tied to the foreign exchange market.
BCB Governor Gabriel Galipolo previously said crypto use had risen in Brazil over recent years. He said about 90% of flows were linked to stablecoins, raising concerns over taxation, money laundering, and backing.
The central bank has also reviewed stablecoins issued outside its supervision. In a technical note to Congress, it warned that such tokenscould face bans or strict conditions in Brazil.
The note said real-denominated stablecoins issued beyond BCB oversight may affect regulatory equality and monetary sovereignty. It also said foreign-currency stablecoins may raise concerns over capital flows and payment system fragmentation.
