Brazil Bars Crypto from Regulated Cross-Border Payment Rails

Brazil's central bank has tightened rules for cross-border payment providers operating under its eFX framework. The regulator published Resolution BCB No. 561, which prohibits the use of virtual assets in regulated electronic foreign exchange payment channels.

The resolution requires that payments and receipts between an eFX provider and its foreign counterpart be carried out exclusively through a foreign exchange transaction or movement in a non-resident Brazilian real account. Virtual assets are explicitly prohibited from this settlement process.

BCB Governor Gabriel Galipolo has expressed concerns about the use of crypto in Brazil, citing a surge in usage over the past two to three years with approximately 90% of flows linked to stablecoins. The central bank is seeking to keep cross-border payment flows within supervised structures.