Brazils Central Bank Restricts Crypto Use in eFX Cross Border Payments Under Resolution BCB 561 Tightening Stablecoin Settlement Rules Compl

Brazil updates foreign exchange framework banning crypto stablecoins in eFX settlement flows while keeping trading legal under strict supervision rule

Brazil’s central bank has introduced updated foreign exchange regulations that tighten the use of crypto assets in regulated cross-border payments, strengthening oversight of stablecoin-based settlement within the country’s electronic foreign exchange (eFX) framework. The changes were issued through Resolution BCB No. 561, published on April 30 by the Banco Central do Brasil. ### Changes to the eFX System The eFX framework is a regulated system used in Brazil for digital international payments, including transfers, purchases, and withdrawals. Resolution 561 revises how this system operates by imposing stricter rules on settlement flows between Brazilian payment providers and foreign counterparties. Under the new rules, all payments and receipts between an eFX provider and a foreign partner must be executed exclusively through traditional foreign exchange channels or through Brazilian real accounts held by non-residents. This effectively removes virtual assets from the settlement layer of regulated FX transactions. ### Crypto and Stablecoin Restrictions A central element of the regulation is the prohibition of using virtual assets—such as Bitcoin, USDT, USDC, and other stablecoins—as settlement instruments within the eFX system. In practice, this means that payment providers cannot convert Brazilian reais into crypto assets and use blockchain networks to settle international payments under the regulated FX framework. The central bank is explicitly separating crypto activity from licensed foreign exchange operations. At the same time, the rule does not ban crypto in general. Individuals and companies can still legally buy, sell, hold, and transfer digital assets. The restriction applies only to their use as infrastructure for regulated cross-border payment settlement. ### Regulatory Objectives The central bank’s move is part of a broader strategy to bring digital asset activity under formal financial supervision while reducing risks related to money laundering, fraud, and opaque international transfers. Brazil has been steadily tightening crypto oversight. In November, the central bank introduced a comprehensive regulatory framework for virtual asset service providers (VASPs), extending anti-money laundering (AML), counter-terrorism financing, governance, transparency, and reporting obligations to the sector. These rules are expected to take effect in February. Authorities have paid particular attention to stablecoins, which dominate crypto usage in Brazil. In the first half of 2025, crypto transactions reached about 227 billion reais (around $42.8 billion), with USDT accounting for roughly two-thirds of volume and Bitcoin about 11%. ### FX Classification of Crypto Transactions Brazil has also expanded the classification of certain crypto activities as foreign exchange operations. This includes buying, selling, or exchanging fiat-pegged virtual assets when used in cross-border transactions. The classification also applies to international payments involving crypto assets, including those linked to card payments and electronic transfer systems. This brings selected crypto flows under the same regulatory framework as traditional FX activity when used for international settlement. ### eFX Expansion and Limits Resolution 561 also expands the scope of the eFX system by allowing transfers related to investments in financial and capital markets in Brazil and abroad. However, these operations are limited to id="armcp-prerender-content"0,000 per transaction. The same limit applies to certain digital payment solutions that are not integrated into e-commerce platforms. This is intended to balance innovation with risk control in digital finance. ### Compliance Requirements The new framework introduces stricter compliance and reporting obligations. Companies providing international payment services without authorization may continue operating temporarily but must apply for central bank authorization by May 31, 2027. Authorized institutions must update their registration with the central bank’s Unicad system by October 30, 2026. Additional requirements include: * Segregation of client funds for eFX operations * Monthly reporting through FX regulatory systems * Record retention for at least 10 years ### Impact of the Regulation The central bank says the goal of Resolution 561 is to improve traceability and strengthen safeguards in cross-border financial flows. By excluding crypto assets from regulated FX settlement infrastructure, Brazil is reinforcing a clear boundary between decentralized digital assets and the formal banking system. While crypto remains legal for trading and custody, its role in regulated international payments is now significantly restricted.

Source: https://cryptobriefing.com/brazil-crypto-regulatio