Brazil’s central bank has prohibited the use of cryptocurrencies in cross-border payments within regulated electronic foreign-exchange channels. The move, announced on Friday, comes as the central bank aims at bringing crypto based foreign transactions fully within the nation’s regulated exchange system.
The Banco Central do Brasil has updated its rules with Resolution No. 561, making it clear that cross-border payments must now go through traditional foreign exchange channels or regulated Brazilian accounts held by foreign entities. Additionally, the central bank has effectively ruled out the use of cryptocurrencies for these types of transactions under the eFX framework.
Interestingly, the decision has landed against the larger backdrop of Brazil witnessing a splurge in stablecoin usage, forcing regulators to inculcate rules that cater to the larger digital asset segment.
Who gets affected?
The new rule might look like an umbrella order that covers everything, however, the central bank has specifically mentioned the areas that the new regulation will address.
As per the official release, Brazil’s move does not explicitly prohibit cryptocurrency transfers. It actually removes cryptocurrencies, such as stablecoins, from the jurisdiction of Brazil’s regulatory system, focusing on the central bank’s goal to keep transactions abroad through managed foreign exchange channels.
In November 2025, the Brazilian Central Bank imposed new rules that required crypto companies to be officially licensed to conduct business operations. This strategy sought to integrate the crypto industry into the traditional banking system through the imposition of equivalent requirements, such as consumer protection, corporate governance, internal controls, cyber security, and anti-money laundering standards.
Additionally, it classifies companies according to their roles as intermediaries, custodians, and brokers, allowing regulators to tailor their actions accordingly. Although the guidelines became effective in February, businesses have been granted a grace period of nine months to become compliant.
Brazil sees new crypto rules getting enacted
Brazil is witnessing waves of regulations in the crypto industry amid efforts from policymakers to catch up with increasing crypto usage. According to reports, Finance Minister Dario Durigan has suspended a public consultation concerning the regulation of crypto taxation. This suggests that policymakers are still trying to figure out the ideal regulatory approach for taxing digital currencies.
However, there are instances where policymakers are adopting a more aggressive approach. Recently, there have been moves made by Brazilian authorities in prohibiting prediction markets by restricting access to websites like Kalshi and Polymarket. Such prohibitions have occurred as a result of concerns raised on the potential threats posed to financial markets by prediction markets.
Nonetheless, Brazil stands among the leading crypto markets in the world. It is the largest in Latin America and ranked fifth worldwide in the 2025 Global Crypto Adoption Index by Chainalysis, a notable rise from 10th place in 2024.
Central bank chief Gabriel Galipolo has pointed out that crypto usage in the country has been steadily increasing over the past three years. It is interesting to note that about 90 percent of such activities are related to stablecoins, which shows the wide acceptance of such currencies in the process of payment and transfer transactions, along with managing the volatility of currency.
In essence, the Brazilian model demonstrates the delicate balance between high user acceptance and increasing regulatory attention.