Brazil’s central bank has introduced a major regulatory move that restricts the use of cryptocurrencies and other virtual assets in the country’s regulated cross-border payment infrastructure. The new rule is part of the nation’s broader effort to tighten oversight of digital asset transactions and strengthen supervision of international money flows.
According to reports, the Banco Central do Brasil published Resolution No. 561 on April 30, which updates regulations governing the Electronic Foreign Exchange system, commonly known as eFX. The framework is widely used for international transfers, remittances, and cross-border payment services in Brazil.
Under the revised rules, payments and receipts conducted through the eFX system must now occur exclusively through traditional foreign exchange transactions or via Brazilian real accounts held by non-residents. The use of cryptocurrencies, stablecoins, and other virtual assets within this regulated payment rail is now prohibited.
The decision does not amount to a nationwide crypto ban. Instead, it specifically targets the use of digital assets inside the official eFX framework. Brazilian authorities appear focused on ensuring that cross-border transactions remain within channels that regulators can monitor more effectively.
The restriction also applies to transitional eFX providers that are still awaiting formal authorization from the central bank. These companies can continue operating temporarily if they apply for authorization before May 31, 2027, but they must comply with the updated rule prohibiting crypto-based settlement methods.
Brazil has been increasing its scrutiny of crypto activities over the past year, especially concerning stablecoins. Regulators have expressed concerns about the rapid growth of stablecoin usage for international payments and remittances. Central bank officials reportedly noted that nearly 90% of crypto-related flows in Brazil are linked to stablecoins, raising concerns over taxation, anti-money laundering compliance, and financial oversight.
The new eFX rule follows a broader regulatory framework introduced in late 2025 that classified many crypto-fiat operations as foreign exchange activities. Those regulations expanded anti-money laundering and counter-terrorism financing obligations for virtual asset service providers operating in Brazil.
Brazilian regulators have also warned about risks tied to stablecoins issued outside the supervision of the country’s central bank. Officials believe that unsupervised stablecoins could create challenges related to monetary sovereignty, regulatory equality, and capital flow monitoring.
Despite the tighter controls, Brazil remains one of Latin America’s most active crypto markets. The country continues to develop a comprehensive framework for virtual asset service providers, exchanges, and digital payment companies. Analysts believe the latest move signals that Brazil is not rejecting crypto innovation entirely but is instead attempting to integrate the sector into a more controlled and transparent financial system.
For crypto businesses and users operating in Brazil, the regulation marks another sign that authorities are prioritizing compliance, traceability, and oversight as digital assets become increasingly intertwined with mainstream finance.
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