Brazil's central bank has implemented comprehensive restrictions on cryptocurrency settlements within regulated foreign exchange (FX) payment rails through Resolution BCB 561, which was published on April 30, 2026. According to the latest reports from crypto.news, the central bank published this resolution, which bans "virtual assets" from settlement inside the electronic foreign-exchange (eFX) channel that banks, payment institutions, and licensed remittance providers use for international payments. The document states that payments or receipts between an eFX provider and its foreign counterparty must be carried out exclusively through a foreign exchange transaction or movement in a non-resident Brazilian real account, with the use of virtual assets prohibited. This regulatory action represents a significant shift in the country's approach to digital asset adoption in financial services, particularly targeting banks, payment institutions, and licensed remittance providers operating within Brazil's supervised FX framework. The resolution comes into effect on October 1, 2026, as reported by crypto.news, and lists "virtual assets" as a special category identifying transactions, meaning the bank recognizes their existence but chooses not to allow their implementation in cross-border operations.
The central bank's decision specifically prohibits the use of stablecoins and cryptocurrencies as settlement mechanisms for cross-border transactions within regulated payment systems. As reported by crypto.news, the restriction applies under transitional rules for eFX providers that are not yet listed among approved provider categories. Those firms may continue providing eFX services only if they apply for authorization from the central bank by May 31, 2027, but their payments and receipts must still use foreign exchange transactions or non-resident real accounts, not virtual assets. Bitcoin cannot serve as a settlement medium within the eFX infrastructure for international transfers or related payment corridors networks. The ban applies to all regulated electronic foreign exchange providers, requiring them to process overseas transfers through traditional forex transactions or non-resident real-denominated accounts. According to crypto.news, this measure forces firms to abandon on-chain efficiency for fiat-based operations, effectively barricading blockchain networks from becoming parallel transfer value channels while seeking to guarantee total traceability and direct supervision over FX flows in Brazil.
The regulatory restrictions have significant implications for Brazil's cryptocurrency market, particularly affecting stablecoin usage in remittance flows. According to crypto.news, BCB Governor Gabriel Galipolo flagged the issue publicly in February, noting that crypto use in Brazil had jumped sharply over the previous two to three years, with stablecoins accounting for roughly 90% of those flows. This heavy reliance on stablecoins has drawn regulatory attention due to concerns about taxation, money laundering, and questions around asset backing. The central bank expressed particular concern that real-denominated stablecoins issued outside BCB supervision may pose risks to regulatory equality and monetary sovereignty, while foreign-currency stablecoins raise concerns around jurisdiction, capital flows and fragmentation of the payments system. The new data reveals that crypto transactions in Brazil reached ₹227 billion ($42.8 billion) in the first half of 2025, up 20% from a year earlier, with USDT accounting for two thirds of that volume, while Bitcoin represented 11%. The central bank has also classified purchases, sales, and exchanges of fiat pegged virtual assets as foreign exchange operations under the broader framework, covering international payments and transfers using virtual assets, including transactions tied to card settlements or other electronic payment methods.
Resolution 561 expands the scope of eFX operations by allowing transfers related to investments in financial and capital markets in Brazil or abroad, capped at the equivalent of $10,000 per transaction. The same limit applies to certain digital payment solutions that are not integrated with ecommerce platforms. Companies that currently offer international payment services without central bank authorization may continue operating temporarily, but they must apply for authorization by May 31, 2027. Authorized institutions that already provide eFX services must update their registration with the central bank's Unicad system by October 30, 2026. The new rules require segregated accounts for eFX related client funds, monthly reporting through the central bank's foreign exchange system, and transaction record keeping for 10 years. The central bank said the measures are aimed at improving traceability and strengthening safeguards against illicit financial activity. These enhanced compliance requirements represent Brazil's broader effort to bring crypto activity into the supervised financial system, with the central bank releasing long-awaited rules for virtual asset service providers in November, extending anti-money laundering, terrorism financing, consumer protection, transparency, governance, and reporting obligations to the sector, which are set to take effect in February.
