Brazil Central Bank Bans Crypto Use In Cross-Border Payments Under New eFX Rules

Brazil’s central bank has introduced new restrictions on the use of digital assets in cross-border payments through Resolution BCB No. 561, marking a significant shift in the country’s approach to international financial flows. The updated framework revises rules governing foreign exchange services, known as eFX, and requires that all international transfers be conducted through regulated foreign exchange operations or authorized accounts. Under the new provisions, crypto assets—including stablecoins—are excluded from use in these transactions.

The regulation also applies to service providers operating under transitional arrangements. Firms that are not yet formally authorized may continue offering cross-border payment services only if they submit an application for approval by May 31, 2027. During this interim period, however, they must comply with the same restrictions, meaning all payment activity must be processed through official foreign exchange channels or non-resident real-denominated accounts rather than digital assets.

While the measure does not prohibit the holding or transfer of cryptocurrencies within Brazil, it effectively removes them from the regulated infrastructure used for international payments. The central bank’s approach signals a preference for maintaining oversight of cross-border financial activity within established foreign exchange systems, where monitoring and compliance mechanisms are already in place.

In addition to limiting the role of crypto in international transactions, the new rules introduce stricter compliance obligations for service providers. These include enhanced reporting requirements, transaction limits, and reinforced know-your-customer procedures, along with mandatory data retention for up to ten years. The updated framework is scheduled to take effect on October 1, 2026.

Brazil Tightens Crypto Oversight As Stablecoin Risks Prompt Broader Regulatory Push And FX Control Measures

The policy forms part of a broader regulatory effort to bring digital asset activity under closer supervision. In late 2025, the central bank required virtual asset service providers to obtain authorization to operate, extending existing financial sector standards to the crypto industry. These rules introduced classifications for service providers, such as intermediaries, custodians, and brokers, and established requirements related to governance, consumer protection, cybersecurity, and anti-money laundering controls. A transition period was provided to allow companies time to meet the new standards.

The latest measures also reflect increasing concern among policymakers regarding the role of stablecoins, particularly those issued by entities outside the central bank’s regulatory scope. In a technical assessment submitted to Brazil’s Congress, the central bank raised the possibility of imposing restrictions or conditions on such instruments within the domestic market. 

The document highlighted potential risks associated with stablecoins linked to the Brazilian real but issued offshore, including challenges to regulatory consistency and monetary sovereignty. It also pointed to concerns around foreign-currency stablecoins, citing issues related to jurisdiction, capital movement oversight, and the potential fragmentation of the national payments system.

Taken together, the regulatory updates indicate a more cautious stance toward the integration of digital assets into core financial infrastructure. By reinforcing the role of traditional foreign exchange channels and tightening oversight of emerging payment technologies, Brazil’s central bank appears focused on preserving control over cross-border transactions while continuing to evaluate the risks associated with the growing adoption of crypto-based financial instruments.

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