Crypto▼ Bearish
Brazil Requires 24-Hour Hold on Crypto Transfers Over $10K
Resolution 584 requires exchanges to hold crypto transfers to self-custody and foreign platforms for up to 24 hours. The rule takes effect Jan. 1, 2027.
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Brazil's central bank is requiring crypto firms to hold certain transfers to self-custody wallets and overseas platforms for up to 24 hours, a rule aimed at slowing the movement of fraud proceeds through stablecoins.
Resolution BCB No. 584, published Aug. 7, applies when a single transaction, or a customer's combined transfers during one day, exceeds $10,000. Smaller transfers can be held as well, when a provider's risk controls flag them for additional review.
The rule targets a specific flow: customers fund accounts with Brazilian reais or crypto, then attempt to move the assets to self-custody or an overseas virtual asset service provider. It covers Bitcoin and fiat-backed stablecoins.
The Central Bank of Brazil said the measure responds partly to the growing use of virtual assets, particularly stablecoins, to quickly move money obtained through financial fraud.
The 24-hour period is a precautionary anti-fraud measure, not an asset freeze. Providers must assess the customer's risk profile, the transaction, the recipient and the jurisdiction involved before releasing or rejecting the transfer.
Customers must be told when a transaction is being held and informed the restriction is temporary. Providers may release funds before the period expires when a documented risk review determines the transaction can proceed.
Two paths lead into the holding window. The first is mechanical: any transfer over $10,000, whether a single transaction or a day's combined activity. The second is discretionary: any transfer, regardless of size, that a provider's risk controls flag for additional scrutiny. The discretionary path lets providers apply the hold to smaller transfers when the customer's profile or the recipient's jurisdiction raises questions.