Brazil’s central bank bans stablecoin and crypto settlement in cross-border payments
Brazil Bans Crypto Use for Overseas Remittances in eFX
On April 30, Brazil’s central bank announced a new resolution, No. 561, that prohibits electronic foreign exchange (eFX) providers from using stablecoins, bitcoin, or other cryptocurrencies to settle overseas remittances. The rule, which will be effective starting October 1, aims to update regulations for eFX, Brazil’s regulated system for digital international payments, purchases, withdrawals, and transfers. The adaptation deadlines for this new rule run until 2027.
Under the new regulation, payments between an eFX provider and its foreign counterpart must go through a foreign exchange transaction or a non-resident real-denominated account in Brazil, with cryptocurrencies being explicitly prohibited as a settlement option.
It is important to note that this ban does not extend to crypto trading. Investors can still engage in buying, selling, holding, and transferring cryptocurrency through authorized virtual asset service providers, as outlined in Resolution BCB No. 521, which came into effect on February 2. Resolution 561 specifically targets the back-end payment rail used by regulated eFX firms.
This change directly impacts companies like Wise, Nomad, and Braza Bank, which had incorporated stablecoin settlements into their cross-border transactions. For instance, Nomad utilizes Ripple’s network to facilitate fund transfers between Brazil and the U.S., settling transactions in stablecoins. Similarly, Braza Bank issued a real-backed stablecoin on the XRP Ledger.
According to Receita Federal data, Brazil’s crypto market moves between $6 billion to $8 billion monthly, with stablecoins representing approximately 90% of the volume. The country has seen a significant rise in crypto adoption, ranking fifth globally in 2025, up from tenth place the previous year. An estimated 25 million Brazilians are involved in holding or transacting with cryptocurrencies.
The resolution also imposes restrictions on eFX operations, limiting them to BCB-authorized institutions such as banks, Caixa Econômica Federal, securities and FX brokers, as well as payment institutions acting as e-money issuers or acquirers. Non-authorized firms can continue their operations but must apply for authorization by May 31, 2027, and comply with regulations such as using segregated accounts for client funds and submitting detailed monthly reports.
Furthermore, Resolution 561 expands the scope of eFX by allowing providers to handle transfers related to financial and capital market investments in Brazil or abroad, with a transaction limit set at $10,000. The same cap applies to digital payment solutions not integrated with e-commerce platforms.
This regulatory move is part of a broader effort by Brazil’s regulatory authorities to delineate the role of cryptocurrencies in the market, specifically excluding them from serving as eFX settlement infrastructure.
Stay tuned for more updates on the evolving regulatory landscape in Brazil’s crypto market.
