Brazil Central Bank Bans Crypto for Cross-Border Remittances Under New eFX Rules

Brazil’s central bank has introduced sweeping new regulations that prohibit the use of cryptocurrencies such as Bitcoin and stablecoins for settling international remittances within its electronic foreign exchange (eFX) system. The new rule, outlined in BCB Resolution No. 561 and published on April 30, is set to take effect on October 1, with full compliance deadlines extending into 2027.

Under the updated framework, all transactions between an eFX provider and its foreign counterpart must be conducted through traditional foreign exchange mechanisms or via non-resident real-denominated accounts within Brazil. This effectively eliminates the option of using digital assets like USDT, USDC, or Bitcoin as settlement tools for cross-border payments. As a result, remittance companies will no longer be allowed to convert Brazilian reais into crypto for blockchain-based transfers abroad.

Despite the restriction, Brazil is not banning cryptocurrency trading. Investors can still legally buy, sell, and hold digital assets through authorized virtual asset service providers under Resolution BCB No. 521, which came into force earlier this year. However, the new regulation specifically targets the backend infrastructure used by regulated eFX firms, closing a key channel that previously enabled crypto-based settlement.

Companies such as Wise, Nomad, and Braza Bank—known for integrating stablecoins into international payment flows—will be directly impacted. Brazil’s crypto market remains significant, with monthly transaction volumes ranging from $6 billion to $8 billion and stablecoins accounting for nearly 90% of activity. The country also ranks among the top global adopters of cryptocurrency, with around 25 million users.

Additionally, the regulation limits eFX participation to central bank-authorized institutions, including banks, brokers, and licensed payment entities. Firms operating without authorization must apply by May 31, 2027, and comply with stricter requirements such as segregated client accounts and monthly reporting.

While tightening controls, the central bank has expanded eFX capabilities to support certain investment-related transfers up to $10,000 per transaction. Overall, the move signals Brazil’s intent to regulate crypto’s role in financial infrastructure while still allowing its presence in the broader market.