Brazil’s central bank has enacted a ban on the use of cryptocurrencies, including stablecoins like USDT and USDC, for settling overseas remittances through electronic foreign exchange (eFX) providers. The new regulation, known as BCB Resolution No. 561, was published on April 30 and will take effect on October 1, 2026, with compliance deadlines extending into 2027.
The resolution mandates that all payments between eFX providers and their foreign counterparts must be conducted via traditional foreign exchange transactions or through non-resident accounts in Brazilian reais. This effectively eliminates the option of using cryptocurrencies for these transactions, meaning that remittance firms cannot convert customer funds into digital currencies for international settlements.
However, the regulation does not restrict individual investors from trading cryptocurrencies. Under a separate regulation, BCB Resolution No. 521, which came into effect on February 2, users can still buy, sell, and hold cryptocurrencies through authorized virtual asset service providers. Resolution 561 specifically targets the back-end payment systems utilized by regulated eFX firms.
This regulatory change particularly impacts companies like Wise, Nomad, and Braza Bank, which have integrated stablecoin transactions into their cross-border payment processes. For instance, Nomad employs Ripple’s network for transferring funds between Brazil and the U.S. using stablecoins, while Braza Bank has launched a real-backed stablecoin on the XRP Ledger.
Brazil’s cryptocurrency market is significant, with monthly transactions ranging from $6 billion to $8 billion, and stablecoins representing approximately 90% of this volume, according to data from Receita Federal. The country ranked fifth globally in crypto adoption in 2025, a rise from tenth place the previous year, with around 25 million Brazilians engaged in cryptocurrency transactions.
In addition to the cryptocurrency ban, Resolution 561 limits eFX operations to institutions authorized by the central bank, including banks, Caixa Econômica Federal, and licensed payment institutions. While unauthorized firms can continue to operate, they must apply for authorization by May 31, 2027, and adhere to strict requirements, including using segregated accounts for client funds and submitting detailed monthly reports.
Despite the restrictions, the resolution allows eFX providers to facilitate transfers related to financial and capital market investments, with a transaction cap of $10,000. The same limit applies to digital payment solutions that are not integrated with e-commerce platforms.
This regulatory move is part of a broader initiative by Brazilian authorities to establish clear guidelines for the cryptocurrency market. Earlier in March, industry associations representing over 850 companies expressed opposition to extending Brazil’s IOF financial transaction tax to stablecoin activities.
While Brazil’s central bank is setting boundaries for cryptocurrency usage, it is clear that the regulatory framework aims to support traditional financial systems rather than allowing digital currencies to serve as settlement infrastructure for eFX transactions.
Brazil's central bank has banned the use of cryptocurrencies for cross-border remittances through electronic foreign exchange providers. The new regulation, effective October 1, 2026, aims to regulate the cryptocurrency market while still allowing individual trading of digital assets.