Decryptnews: Brazil’s Central Bank Prohibits Stablecoin and Crypto Use for Cross-Border Settlements

The new restriction targets fintech companies and payment processors, effectively blocking the backend infrastructure for international transfers, though individual investors remain free to purchase and retain digital assets.

Key Takeaways:

• Starting October 1, Brazil’s central bank will prohibit electronic foreign exchange (eFX) operators from utilizing stablecoins and other digital currencies, such as Bitcoin, to clear overseas remittances.
• The regulation impacts fintechs and payment entities by shutting down the backend settlement rail for cross-border transactions, while private crypto holders continue to buy and keep their assets.
• eFX transactions must now rely on standard foreign exchange mechanisms or non-resident real-denominated accounts. Unlicensed entities have until May 2027 to seek approval from the BCB.

Brazil’s central bank has issued a prohibition on electronic foreign exchange (eFX) providers using stablecoins, bitcoin, or other cryptocurrencies to settle overseas remittances.

Published on April 30, BCB Resolution No. 561 updates the regulations for eFX, which serves as Brazil’s regulated framework for digital international payments, purchases, withdrawals, and transfers. The rule becomes effective on October 1, with compliance deadlines extending through 2027.

Transactions between an eFX provider and its foreign counterpart must now be routed through a foreign exchange transaction or a non-resident real-denominated account in Brazil, with cryptocurrencies explicitly excluded as a settlement method.

Under the new rules, a remittance firm cannot collect reais from a customer, convert those funds into USDT, USDC, or bitcoin, and then settle the payment abroad via a blockchain network.

The regulation does not prohibit crypto trading. Investors retain the right to buy, sell, hold, and transfer cryptocurrency through authorized virtual asset service providers under Resolution BCB No. 521, which took effect on February 2. Resolution 561 specifically targets the backend payment rail previously used by regulated eFX firms.

This change directly affects companies like Wise, Nomad, and Braza Bank, which had integrated stablecoin settlement into their cross-border operations. For instance, Nomad utilizes Ripple’s network to move funds between Brazil and the U.S. and settle in stablecoins, while Braza Bank has issued a real-backed stablecoin on the XRP Ledger.

According to data from the Receita Federal, Brazil’s crypto market processes between $6 billion and $8 billion monthly, with stablecoins comprising approximately 90% of this volume. The country ranked fifth in global crypto adoption in 2025, rising from tenth place the previous year, with roughly 25 million Brazilians holding or transacting in crypto.

The resolution also limits eFX services to BCB-authorized institutions, including banks, Caixa Econômica Federal, securities and FX brokers, and payment institutions functioning as e-money issuers or acquirers. Unauthorized firms may continue operations but must submit applications by May 31, 2027. These entities are required to use segregated accounts for client funds and submit detailed monthly reports.

Resolution 561 expands eFX capabilities in one specific area: providers can now handle transfers linked to financial and capital market investments in Brazil or abroad, with a cap of $10,000 per transaction. This limit also applies to digital payment solutions not integrated with e-commerce platforms.

This rule represents the second front in a broader regulatory push. In March, industry associations representing over 850 companies opposed extending Brazil’s IOF financial transaction tax to stablecoin operations.

Brazil’s regulator is establishing clear boundaries for crypto to exist in the market, but not as part of the eFX settlement infrastructure.