The Central Bank of Brazil has prohibited the use of virtual assets in international payment flows, as part of updated rules designed to tighten oversight of cross-border transactions.
The Central Bank of Brazil has moved to prohibit the use of cryptoassets in the settlement of cross-border payments, as part of a broader update to its regulatory framework for international transfers.
Under Resolution No. 561, published on 30 April, the central bank amended its existing rules governing so-called “eFX” services, introducing stricter controls on how international payment providers operate and how transactions are processed.
At the centre of the update is a clear requirement that payments and receipts between Brazilian providers and foreign counterparties must be conducted through traditional financial channels, explicitly excluding the use of virtual assets.
The regulation states cross-border transactions must be carried out “exclusively” via foreign exchange operations or through movements in non-resident accounts denominated in Brazilian reais. The use of virtual assets for these transactions is prohibited. This applies not only to the initial payment flow, but also to any associated adjustments, reversals or reimbursements linked to the transaction.
The measure places Brazil alongside a growing number of jurisdictions seeking to ensure that cross-border payment flows remain within regulated, traceable financial infrastructure, particularly at the settlement layer.
Expanded framework for eFX providers
The changes form part of a broader overhaul of Brazil’s eFX regime, which covers international payment and transfer services used for:
- Purchases of goods and services
- Withdrawals abroad
- Transfers linked to financial market investments
In certain cases, transactions conducted via digital payment solutions remain subject to a $10,000 cap, particularly where there is no integration with an e-commerce platform.
The updated rules also expand the range of institutions that can provide eFX services. Banks, payment institutions, brokerages and other authorised entities may act as providers, even if they are not directly licensed to operate in the foreign exchange market.
However, participation comes with tighter obligations. Under the new framework, eFX providers must:
- Maintain transaction records for a minimum of ten years
- Ensure customers are clearly informed about the service
- Establish formal relationships with foreign counterparties
- Adhere to existing anti-money laundering and disclosure requirements
In parallel, institutions involved in the payment chain, including those handling foreign exchange transactions or maintaining relevant accounts, are required to monitor the consistency of transaction data and report activity to the central bank.
Monthly reporting obligations have also been expanded, covering card issuers, acquirers and other entities participating in cross-border flows.
Tighter control over payment flows
The resolution also introduces stricter rules governing how funds move into and out of the eFX system.
Payments from users in Brazil to an eFX provider must be made through regulated channels, such as bank or payment accounts, payment slips, or limited-use instruments. Similarly, funds delivered to recipients must be credited to accounts held at authorised institutions, including those connected to Brazil’s Pix system.
The rules explicitly prohibit the offsetting of incoming and outgoing payments, requiring each transaction to be processed individually.
The new framework will come into force on 1 October 2026. Providers must register their eFX activities with the central bank by 30 October 2026, while entities not currently authorised will have until 31 May 2027 to apply for the relevant permissions or cease offering the service.
