Brazil targets crypto fraud with up to 24-hour transfer hold
The rules, effective Jan. 1, 2027, cover transactions above $10,000 sent to overseas providers or self-custody wallets, along with other transfers flagged for review.
Brazil is targeting crypto fraud with a new rule that could allow transfer holds of up to 24 hours, according to the central bank's announcement on Friday. Effective from January 1, 2027, the rule applies to transactions over $10,000 sent to overseas providers or self-custody wallets. Virtual asset service providers (VASPs) must place precautionary holds on flagged transfers, including those that require further scrutiny based on the provider's risk management policies.
Providers will also be required to notify customers of holds and maintain records of fraud incidents, attempted fraud, and corrective actions. While the measure expands Brazil's crypto safeguards, it follows similar anti-scam measures introduced in other jurisdictions like Japan and the European Union.
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