Brazil Central Bank Restricts Crypto Use in Regulated Cross-Border Payments

Brazil's central bank, Banco Central do Brasil (BCB), has barred the use of virtual assets in certain regulated international payment and transfer services, tightening rules for cross-border payment providers operating under the country's eFX framework. The move is part of the bank's effort to keep cross-border payment flows within supervised foreign exchange rails.

The restriction, outlined in Resolution BCB No. 561, prohibits the use of virtual assets in payments or receipts between an eFX provider and its foreign counterparty. Instead, these transactions must be carried out exclusively through a foreign exchange transaction or movement in a non-resident Brazilian real account. The rule applies to all eFX providers, including those that are not yet listed among approved provider categories, which must apply for authorization from the central bank by May 31, 2027.

The new rule does not amount to a blanket ban on crypto transfers in Brazil, but rather closes off the use of crypto and stablecoins inside the regulated eFX channel. This move is part of Brazil's broader effort to regulate virtual assets, including stablecoins, which have become a larger part of the country's crypto activity. In November 2025, the central bank detailed new rules for virtual asset service providers, including authorization requirements and rules for services involving virtual assets in the foreign-exchange market.

The central bank's push to regulate virtual assets is driven by concerns over the use of stablecoins for payments and cross-border transfers, which have surged in recent years. According to BCB Governor Gabriel Galipolo, about 90% of crypto flows in Brazil are linked to stablecoins, raising concerns around taxation, money laundering, and asset backing. The bank has also signaled concern over stablecoins issued by companies outside its regulatory perimeter, which could face a ban or strict conditions in the domestic market.