Brazil’s Central Bank Bans Crypto for Cross-Border Remittances
- Brazil’s central bank issued Resolution No. 561, effective October 1, prohibiting eFX providers from using stablecoins, bitcoin, or other cryptocurrencies for overseas remittances.
- The rule mandates that payments must be processed through foreign exchange transactions or non-resident real-denominated accounts.
- Approximately $6 billion to $8 billion in crypto transactions occur monthly in Brazil, with stablecoins making up about 90% of this volume.
- The resolution restricts eFX operations to authorized institutions, including banks and payment service providers, while unauthorized firms must apply for compliance by May 31, 2027.
- Transfers related to financial investments are allowed under the new rules but capped at $10,000 per transaction.
This regulatory change aims to tighten control over digital payment systems while allowing continued trading of cryptocurrencies through authorized platforms. The move reflects a broader regulatory effort in Brazil amidst rising crypto adoption.
With about 25 million Brazilians engaging in crypto activities, the ban on using stablecoins for remittances significantly impacts the market dynamics and operational capabilities of firms like Wise and Nomad.(Source)
