Brazil's central bank, Banco Central do Brasil, has issued Resolution BCB No. 561, effectively banning the use of virtual assets, including cryptocurrencies and stablecoins, for settlement within regulated cross-border payment channels. The new rule, published on Thursday, targets electronic foreign exchange (eFX) services, which cover certain international payments and transfers. Under the updated framework, eFX providers must now use official foreign exchange transactions or movements in non-resident Brazilian real accounts for payments with foreign counterparties, explicitly barring virtual assets from being used for these settlements.
The measure is not a blanket ban on cryptocurrency in Brazil; crypto transfers outside the regulated eFX framework remain unaffected. Instead, the central bank has closed one formal route for virtual asset settlement to maintain tighter oversight over cross-border financial flows. The resolution also includes transitional rules for firms not yet listed as approved eFX providers. These companies can continue operating while seeking central bank authorization by May 31, 2027, but must adhere to the same settlement rule, avoiding the use of virtual assets for payments and receipts during this period.
This regulatory tightening comes amid a surge in stablecoin usage within Brazil. Banco Central Governor Gabriel Galipolo has noted that approximately 90% of reported crypto flows in the country are linked to stablecoins, raising concerns over taxation, money laundering, and asset backing. The central bank has also been incrementally adding virtual assets to its financial and foreign exchange rulebook, including new authorization requirements for virtual asset service providers introduced in November 2025. Furthermore, in a technical note to Congress, the BCB warned that real-denominated stablecoins issued outside its supervision could face bans or strict conditions, citing risks to regulatory equality and monetary sovereignty.
