- A new rule in Brazil prohibits the use of crypto in regulated cross-border payments.
- Brazil has had several regulatory changes around cryptocurrency in recent months.
- Crypto usage in Brazil surged in the past three years, particularly with stablecoins.
Brazil’s central bank has issued a new rule on digital assets that prohibits the use of cryptocurrency in regulated cross-border payments. In a Thursday resolution, the apex bank noted that the new rule is part of a broader effort to bring international transfers fully within the country’s foreign exchange system.
New Rule Does Not Mean Outright Ban
The latest resolution is an amendment to Brazil’s eFX framework to require processing cross-border payments through traditional foreign exchange transactions or regulated Brazilian real accounts held by foreign counterparties, but it does not include cryptocurrencies.
It is crucial to note that the latest resolution does not imply an outright ban on cryptocurrency in Brazil. It simply removes digital assets, including stablecoins, from the country’s regulated framework. The move aims to clarify Brazil’s approach to keeping international transfers within monitored foreign exchange channels.
Crypto Regulation in Brazil So Far
Notably, growing crypto usage in Brazil, particularly stablecoins, has generated significant interest among the nation’s authorities. Therefore, regulators want to ensure proper oversight by bringing crypto under financial and foreign exchange regulation.
Brazil had existing requirements for virtual asset service providers, including compulsory licensing, which was introduced in November 2025. That mandate extended the country’s existing financial controls, cybersecurity, and anti-money laundering standards to crypto firms. Enforcement of those rules took effect in February, with a nine-month grace period given to companies to comply.
The latest resolution overlaps with the November 2025 conditions, including another regulatory development from last March, when Brazil’s Finance Minister Dario Durigan paused a planned public consultation on crypto taxation.
Related Article: Brazil Targets R$1.6 Billion Crypto-Laundering Network in Narco-Fluxo Raid
Crypto Usage in Brazil Defy Regulatory Setbacks
It is worth noting that the Brazilian authorities have been active over the last few months in trying to regulate the crypto industry. However, they have yet to establish a definitive framework that can be considered substantive and sustainable for a long period. Such a scenario leaves practitioners unconvinced about future activities and plans.
Recently, Brazilian authorities blocked Kalshi and Polymarket last month in a sweeping ban on prediction market platforms. They cited investor protection and market integrity concerns as the reasons for the ban.
Despite the unsteady regulatory atmosphere in Brazil, the country remains the largest crypto market in Latin America, and the fifth-largest market worldwide, according to Chainalysis’ data. Domestic crypto usage in Brazil surged significantly over the past three years, with approximately 90% of the flow linked to stablecoins.
Related Article: Kalshi and Polymarket Face Ban in Brazil’s Prediction Markets Crackdown
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