The Central Bank of Brazil (BCB) is implementing major reforms to the country's foreign exchange (forex) system under Law No. 14,286/2021, primarily targeting electronic forex (eFX) platforms but with significant implications for cryptocurrency operations. Only authorized institutions will be permitted to offer eFX services, meaning crypto exchanges facilitating international payments must obtain specific licenses, adhere to stricter compliance standards, and disclose full transaction costs, including the Total Effective Value (VET), to enhance transparency and consumer protection.
Stablecoins, particularly dollar-pegged assets like USDT, widely used in Brazil for hedging against inflation and cross-border payments, face increased regulatory scrutiny. Regulators are considering a cap of $10,000 per transaction for international transfers via crypto, aimed at curbing money laundering and capital flight risks. This could reduce the utility of stablecoins for large investors seeking to move capital abroad, potentially driving activity toward unregulated platforms.
Exchanges and brokers will be required to submit detailed client and transaction data to the central bank, integrating with systems like Pix, Brazil's instant payment network, to align crypto more closely with traditional finance. While analysts note the BCB is balancing investment attraction with market integrity, the new rules may limit privacy and freedom for traders who previously used crypto to bypass forex controls, reshaping Brazil's role as a leading crypto market in Latin America.