Brazil Central Bank Bars Crypto Settlement in Cross-Border Payments
The restriction covers electronic foreign-exchange providers, fintechs and payment companies, while individuals can still buy and hold crypto assets.
Brazil’s central bank will ban stablecoins and other cryptocurrencies from settling cross-border payments starting Oct. 1, cutting off a crypto-based back end used by electronic foreign-exchange providers and payment companies.
The restriction applies to fintech companies and payment firms that process overseas remittances through electronic foreign-exchange services. Those payments must instead settle through foreign-exchange transactions or nonresident accounts.
The rule covers Bitcoin (BTC) and other crypto assets, including stablecoins, but does not prohibit individuals from buying or holding them. The measure targets how regulated payment infrastructure settles international transfers rather than personal ownership.
Companies operating without authorization have until May 2027 to seek approval from the Central Bank of Brazil. The deadline creates a transition path for firms affected by the new settlement requirements while preserving the ban on crypto-based settlement from Oct. 1.
