Brazil's central bank, Banco Central do Brasil (BCB), has prohibited the use of virtual assets within certain regulated international payment and transfer services, tightening rules for cross-border payment providers operating under the country's eFX framework.
On Thursday, the BCB published Resolution BCB No. 561, amending existing regulations for eFX — a regulated category covering international payments and transfers. The resolution states that payments or receipts between an eFX provider and its foreign counterparty must be carried out exclusively through a foreign exchange transaction or movement in a non-resident Brazilian real account, with the use of virtual assets explicitly prohibited.
The restriction also applies under transitional rules for eFX providers that are not yet listed among approved provider categories. Those firms may continue providing eFX services only if they apply for authorization from the central bank by May 31, 2027, but their payments and receipts must still use foreign exchange transactions or non-resident real accounts — not virtual assets.
The rule does not constitute a blanket ban on crypto transfers in Brazil. Instead, it closes off the use of crypto and stablecoins inside the regulated eFX channel, reinforcing the central bank's effort to keep cross-border payment flows within supervised foreign exchange rails.
Brazil Tightens Oversight of Crypto-Linked Cross-Border Flows
Brazil has been moving to incorporate virtual assets into its financial and foreign exchange regulatory framework as stablecoins become an increasingly significant part of the country's crypto activity.
In November 2025, the central bank detailed new rules for virtual asset service providers, including authorization requirements and provisions for services involving virtual assets in the foreign-exchange market.
The central bank's push follows growing concern over the use of stablecoins for payments and cross-border transfers. In February, BCB Governor Gabriel Galipolo said that crypto use had surged in the country over the previous two to three years, with approximately 90% of flows linked to stablecoins. He noted that this raised concerns around taxation, money laundering, and asset backing.
The eFX rule also comes as the central bank has signaled concern over stablecoins issued by companies outside its regulatory perimeter. According to the resolution, real-denominated stablecoins issued outside BCB supervision may pose risks to regulatory equality and monetary sovereignty, while foreign-currency stablecoins raise concerns around jurisdiction, capital flows, and fragmentation of the payments system.
Why it matters
The prohibition targets the regulated eFX channel specifically, meaning crypto and stablecoins remain legal in Brazil but are excluded from the supervised foreign exchange rails used for cross-border payments — a structural distinction that affects how payment providers must route international transactions.
With approximately 90% of Brazil's crypto flows tied to stablecoins, the rule directly addresses the dominant use case driving the central bank's oversight concerns, including taxation gaps and money-laundering risks.
The central bank's stated concerns about real-denominated stablecoins threatening monetary sovereignty and foreign-currency stablecoins fragmenting the payments system reflect broader regulatory concerns that go beyond the eFX channel, suggesting the current rule is part of a wider effort to bring virtual assets within supervised financial infrastructure.
