Brazil tightens crypto transfers to curb fraud

Brazil's central bank has issued new rules mandating crypto exchanges to delay substantial international transfers, particularly those involving fiat currency reais or cryptocurrencies, for up to 24 hours. This measure, set to commence on January 1, 2027, is outlined in Resolution BCB No. 584/2026, published on August 7. The regulation applies to transactions exceeding $10,000, whether executed in a single transaction or multiple transactions within a day.

Smaller transfers may also incur delays if flagged as potentially risky by the exchanges. The central bank cited the use of cryptocurrencies, including stablecoins, for facilitating financial fraud, as the rationale behind this stringent requirement. However, exchanges retain the authority to expedite the transfer process if their risk assessment deems the transaction legitimate.

This stipulation necessitates thorough documentation of the decision and communication with the affected customers. The provision also elevates the responsibility of crypto exchanges in risk management, considering factors such as the customer's profile, the transaction details, the counterparty, and the destination jurisdiction.