The disruption fell on the day Brazil barred regulated firms from dealing with unauthorised crypto providers, a week after the $6.3bn Binance hack sent US supervisors to check bank defences.
Digital bank Nubank and Mercado Pago suspended parts of their crypto transfer services in Brazil following incidents at third-party service providers, the companies stated separately.
Brazilian digital bank Nubank suspended crypto deposits and withdrawals, citing instability at an external data provider. The digital bank emphasised the issue originated outside its own infrastructure. “All assets and data remain protected,” Nubank stated.
Mercado Pago, the fintech arm of MercadoLibre, attributed the disruption to an incident at a third-party provider responsible for risk monitoring and anti-money laundering (AML) checks.
The company noted that certain transfers to external wallets were “blocked as a preventive protective measure” and warned that incoming crypto deposits might experience processing delays.
Buying and selling crypto within both apps remained functional, and Nubank restored transfer capabilities later on November 6.
Blockchain infrastructure firm Paxos provides the crypto infrastructure for the products offered by both companies. Neither company explicitly named Paxos, and according to Reuters, it remains unclear whether they were affected by the same service provider.
Screening issues halt transfers at Nubank
The disruption exclusively affected transactions to and from external wallets – transactions requiring third-party screening. The Central Bank of Brazil mandates crypto service providers identify the owners of “self-custody” wallets and maintain documented procedures to verify the origin and destination of assets.
The disruption at Nubank also coincided with a new government restriction. Under Resolution BCB 589, as of November 6, banks, payment institutions, and other entities authorized by the Central Bank are prohibited from executing or facilitating crypto transactions through providers that lack a license in Brazil.
Mercado Pago’s securities division applied for a license for crypto brokerage and custody services on July 30, as noted in MercadoLibre’s quarterly report.
Further hurdles are expected to emerge in the coming months. Starting January 1, 2027, Resolution BCB 584 will require service providers to hold transfers exceeding $10,000 – destined for foreign platforms or self-custody wallets – for up to 24 hours to allow for a risk assessment.
In April, the Central Bank prohibited the use of crypto for regulated cross-border payments.
Are high-profile hacks leading to stricter controls?
On October 29, hackers stole approximately $6.3bn from Binance – the largest crypto theft to date. The FBI attributed the attack to the North Korean unit TraderTraitor.
According to Binance, the attackers gained access through an engineer by conducting a fake job interview; the platform subsequently suspended all withdrawals for approximately 48 hours.
Data from Chainalysis shows in 2026, nearly 89% of reported losses from crypto hacks were attributable to actors linked to North Korea. According to Chainalysis’s annual report on crypto crime, these same actors stole a total of at least $2.02bn in 2025.
TRM Labs recorded 207 hacks in the first half of 2026, an increase from 83 during the same period the previous year.
On November 2, regulators from the Federal Reserve and the Office of the Comptroller of the Currency (OCC) began reaching out to US banks to inquire about unusual activity and service disruptions.
While insurers are not expected to withdraw from the crypto sector on a large scale, they are likely to take a more critical look at their clients’ exposure when renewing policies.
Banks have previously severed ties with crypto clients for compliance reasons. For instance, in December 2025, JPMorgan and Checkbook withdrew banking services from Kontigo – a firm focused on the Venezuelan market – just weeks before hackers stole $340,000 worth of USDC from users of that platform.
Neither Nubank nor Mercado Pago has announced any changes to their crypto products.
