The Central Bank of Brazil issued a resolution requiring a 24-hour hold on crypto transfers above $10,000 to foreign exchanges or self-custody wallets, effective Jan 1, 2027.
The Central Bank of Brazil issued a resolution Friday requiring virtual asset service providers to hold transfers exceeding $10,000 for 24 hours before releasing them to foreign exchanges or self-custody wallets. The rule, part of Resolution 584 of 2026, amends earlier fraud-prevention procedures for institutions operating digital assets within the Brazilian Payment System.
The 24-hour retention applies per transaction or when the cumulative value of same-day transfers crosses the $10,000 threshold. Service providers can release the funds earlier if their risk analysis clears the transaction. Customers must be informed of the status of their funds at all times. The central bank said the measures are preventive and "strengthen the protection of financial services users and contribute to the safe development of the virtual asset market in Brazil."
The resolution also requires VASPs to keep daily records detailing fraud or attempted fraud, including corrective measures adopted. The rule applies only to institutions that are part of the Brazilian Payment System, a narrower scope than the broader crypto industry. Firms outside that system – including many pure-play exchanges and wallet providers – may not be directly affected, though the central bank could extend the requirements later.
Abcrypto, a crypto association whose members include Binance, Coinbase, Crypto.com, and Tether, argued the retention would not affect illicit usage patterns. The group said it would instead hurt legitimate businesses that rely on crypto as a fast alternative to the legacy banking system. The criticism echoes earlier pushback during a public consultation that closed July 2.
The resolution takes effect Jan. 1, 2027, giving firms more than a year to adjust compliance systems. Separately, Congress is considering Bill 4308/2024, which would regulate stablecoins. Crypto industry groups oppose designating them as securities under that bill, arguing the classification would stifle innovation. The central bank's move and the stablecoin legislation together signal a tightening regulatory environment for digital assets in Brazil, one of Latin America's largest crypto markets.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.