Brazil's 24-Hour Crypto Hold Rule Targets Self-Custody Fraud Risk

Brazil's central bank will require crypto exchanges to hold transfers above $10,000 for up to 24 hours before releasing them to self-custody wallets or foreign platforms. The measure, published August 7 as Resolution BCB No. 584/2026, takes effect January 1, 2027.

The hold is triggered when a customer deposits Brazilian reais or cryptocurrencies and then initiates a transfer to a self-custody wallet or a foreign virtual asset service provider without Brazilian oversight. The threshold is $10,000, calculated either as a single transaction or the aggregate of a customer's transfers on the same day. Smaller transfers may also be delayed if the platform's risk systems flag them.

The central bank described the retention as precautionary. It gives firms time to check the customer profile, the transaction, the counterparty, and the destination jurisdiction. Providers must notify customers promptly when a hold is applied, explaining its temporary and protective purpose along with the expected duration. If the review clears, the institution may release the funds before the 24 hours expire, provided the decision is documented. At the end of the waiting period, the provider must either process the transfer or reject it.