Brazil Bans Crypto Settlement for Cross-Border Payments Starting October 1st

Brazil's central bank has announced that it will ban stablecoins and other cryptocurrencies from settling cross-border payments starting October 1st. This move targets how regulated payment infrastructure settles international transfers, not personal ownership of these assets.

The restriction applies to fintech companies and payment firms that process overseas remittances through electronic foreign-exchange services. These entities will be required to settle cross-border payments through foreign exchange transactions or non-resident accounts instead.

The ban covers Bitcoin (BTC) and other crypto assets, including stablecoins, but does not prohibit individuals from buying or holding them.

Companies operating without authorization have until May 2027 to seek approval from the Central Bank of Brazil. This creates a transition path for firms affected by the new settlement requirements while preserving the ban on crypto-based settlement from October 1st.