Brazil Cracks Down on Crypto Fraud with 24-Hour Transfer Hold

Brazil's central bank has introduced stricter controls on crypto firms to prevent fraud. Starting in January 2027, providers will be required to wait at least 24 hours after customers fund their accounts before processing transfers to self-custody wallets or offshore crypto firms.

The new rule applies when a single transaction or the sum of daily transactions exceeds $10,000. Smaller transactions that are flagged by providers must also be held, although any held transaction can be released following a documented review by the crypto firm.

The central bank will consider factors such as the risk profile of the customer, the transaction or service, the counterparty to the transfer, and the jurisdiction where the recipient is based when assessing fraud risk. Providers must notify customers when a hold is imposed, explaining its precautionary nature and duration.