Brazil's central bank has banned electronic foreign exchange providers from using stablecoins and cryptocurrencies like Bitcoin for settling overseas remittances. The new rule, BCB Resolution No. 561, takes effect on October 1. Individual investors can still buy, hold, and trade crypto through authorized providers.
Brazil's central bank issued Resolution No. 561 on April 30, updating regulations for electronic foreign exchange (eFX), the country's system for digital international payments. The resolution prohibits eFX providers—such as fintechs, payment firms, and banks—from settling cross-border payments with cryptocurrencies. Instead, payments to foreign counterparties must use traditional foreign exchange transactions or non-resident real-denominated accounts in Brazil. A remittance firm, for instance, cannot convert customer reais into USDT, USDC, or Bitcoin for blockchain settlement abroad, though individual crypto investors face no such restrictions under Resolution BCB No. 521, effective February 2, 2025. The ban is scheduled to take effect October 1, with adaptation deadlines extending to May 31, 2027, for unauthorized firms to seek approval and comply with reporting requirements. Companies like Wise, Nomad, and Braza Bank, which integrated stablecoins into flows—such as Nomad's use of Ripple's network or Braza's real-backed stablecoin on XRP Ledger—will need to adjust. Brazil's crypto market handles $6 billion to $8 billion monthly, with stablecoins comprising about 90% of volume, and roughly 25 million Brazilians engage in crypto, ranking the country fifth globally in adoption for 2025. The resolution also expands eFX scope, allowing transfers up to $10,000 tied to investments, amid ongoing regulatory efforts following industry pushback against proposed taxes on stablecoin operations.