Brazil central bank bars crypto in regulated eFX settlements

On Thursday, Banco Central do Brasil published Resolution No. 561, prohibiting the use of virtual assets, including stablecoins, for settlement in regulated eFX cross-border payment and transfer services. Payments and receipts between an eFX provider and its foreign counterparty must be settled through a foreign-exchange transaction or by movements in a non-resident Brazilian real account.

The resolution amends existing eFX rules, a regulated category that covers international payments and transfers, and closes the channel for crypto-based settlement inside that framework. Providers already operating under approved eFX categories must carry out cross-border receipts and payments via supervised foreign-exchange rails or non-resident BRL accounts rather than through crypto wallets or stablecoins.

Firms offering eFX services that are not yet listed among approved provider categories may continue under a transitional regime only if they apply for central bank authorization by May 31, 2027. While operating under the transitional rules, those entities must still settle cross-border transactions through foreign-exchange transactions or non-resident real accounts and may not use virtual assets.

The central bank issued new rules for virtual asset service providers in November 2025, requiring authorization and compliance when services touch the foreign-exchange market. The bank has cited a marked increase in stablecoin use in cross-border flows as a reason for expanding oversight.

BCB Governor Gabriel Galipolo warned that crypto use surged over the prior two to three years and that about 90% of those flows were linked to stablecoins. He added, “The prevalence of stablecoins in cross-border flows raises concerns around taxation, money laundering and asset backing.”

In a technical note to Congress, the central bank flagged risks from stablecoins issued by entities outside its supervisory reach. The note said real-denominated stablecoins issued without BCB supervision may pose risks to regulatory parity and monetary sovereignty, and that foreign-currency stablecoins could create jurisdictional issues, affect capital flows and fragment the payments system. The bank said such products could face bans or strict conditions in the domestic market.

The new rule does not ban crypto transfers across Brazil. It restricts the use of virtual assets within the regulated eFX channel and requires settlements in that category to follow supervised foreign-exchange rails or use non-resident BRL accounts. The resolution clarifies settlement methods for cross-border payment providers operating under eFX and places those flows under closer oversight.