Brazil sets 24-hour hold on $10,000 crypto transfers

Brazil’s central bank has ordered virtual asset service providers to hold certain crypto transfers for up to 24 hours starting Jan. 1, 2027, adding a new anti-fraud layer to the country’s expanding digital asset rulebook.

Banco Central do Brasil published Resolution BCB No. 584 on Aug. 7, covering transfers above $10,000 destined for foreign crypto providers or self-custody wallets. The threshold applies to a single transaction or a customer’s combined transactions during the same day. Smaller transfers can also face additional review when a provider’s risk policies identify reasons for closer scrutiny.

The central bank said the measure responds to growing use of virtual assets, including stablecoins, to move proceeds from financial fraud quickly, sometimes beyond Brazil or into wallets controlled directly by users.

Under the new rules, a covered provider must retain the assets for 24 hours before proceeding with qualifying transfers. The measure is precautionary, not a permanent freeze. A provider can complete its risk review and release the transfer before the full period ends when conditions set by the regulator are met.

Providers must also tell customers when a transfer is being held. They must maintain records of fraud incidents, attempted fraud and the corrective measures taken. These requirements extend Brazil’s existing payment fraud controls to virtual asset services and give providers more time to review transactions that could otherwise settle rapidly.

The transfer rule is one part of a broader regulatory expansion. In July, the BCB classified virtual asset service providers under its prudential framework, saying they would begin following capital and risk management requirements from Jan. 1, 2027. They must also enter the more demanding Segment 4 supervisory category by June 30, 2028, regardless of size.

The framework builds on earlier licensing, customer asset segregation and compliance requirements. The central bank has also restricted the use of virtual assets to settle payments inside regulated cross-border electronic foreign exchange channels.

The tighter oversight follows fresh scrutiny of Brazil’s stablecoin market. The International Monetary Fund’s July Financial System Stability Assessment found that Brazilian crypto market analysis activity, particularly involving U.S. dollar pegged stablecoins, has grown rapidly since 2017. Cross-border crypto flows have been rising faster than traditional capital flows and nominal GDP, the IMF said.

Crypto providers now have less than five months to adapt transaction monitoring and customer notification, along with record-keeping systems, before Resolution 584 takes effect. Firms will also need processes capable of calculating the $10,000 threshold across multiple transactions made by the same customer during a single day.

The Jan. 1 deadline will bring several regulatory changes into force at once. Besides the new transfer controls, providers will begin operating under additional prudential requirements covering capital and risk management. The overlap means Brazil is moving beyond basic crypto licensing toward ongoing supervision of how regulated providers manage assets and transfers, including financial risks.

For customers, the new rule does not create a general 24-hour delay on every crypto withdrawal. It targets qualifying transfers to overseas providers and self-custody wallets, along with other transactions selected for additional risk assessment. Providers may also release reviewed transactions early, making the eventual waiting time dependent on the circumstances of each transfer.