Central Bank of Brazil bars crypto in cross-border FX

The Central Bank of Brazil published Resolution No. 561 on April 30, banning the use of cryptocurrency assets such as bitcoin and stablecoins in regulated cross-border payment and transfer services. The rule requires all foreign-exchange flows within the regulated system to be settled in fiat currency beginning Oct. 1.

The resolution applies to institutions that provide international payment and transfer services and restricts transactions to conventional foreign-exchange operations or movements in nonresident Brazilian-real accounts held in Brazil. The text specifies that operations must be carried out “exclusively” through a foreign-exchange transaction or via a nonresident real account, and it explicitly lists virtual assets as a category that cannot be used in those operations.

The central bank said the changes aim to improve security and transparency and better align Brazil with global anti-money-laundering and counter-terrorist-financing expectations. The new rules follow a public consultation held in 2025 and limit the provision of cross-border payment services to entities authorized by the bank.

Resolution 561 identifies virtual assets as a distinct transaction type but removes them from the regulated cross-border settlement system. The bank said the measure is intended to ensure traceability and supervisory control over foreign-exchange movements into and out of Brazil and to address risks linked to illicit finance.

The resolution also tightens which organizations may offer cross-border payment and exchange services by increasing direct oversight of cross-border settlement activity and restricting participation to authorized entities.

Industry participants that used stablecoins or other crypto instruments for rapid settlement and lower-cost transfers will have to redesign operations to rely on traditional foreign-exchange mechanisms and onshore accounts to move funds across borders. The central bank’s rule does not ban virtual assets inside Brazil generally; it removes them from the regulated channels for international payments.

Economist and crypto analyst Victor Alfa argued, “Innovation in the settlement layer suffers a severe blow. Companies in the sector will be forced to abandon on-chain efficiency and return to the conventional-and often more costly-rails of traditional banking infrastructure.” Alfa described the resolution as preventing blockchain networks from operating as parallel channels for value transfer.

The resolution takes effect Oct. 1, giving affected firms several months to adjust systems and contracts to meet the fiat-only settlement requirement and the central bank’s authorization rules.