Brazil Cracks Down on Crypto Fraud with Transfer Holds

Brazil's central bank will implement new measures to prevent cryptocurrency fraud by requiring virtual asset service providers (VASPs) to hold certain transfers for up to 24 hours. The rules, set to take effect on January 1, 2027, will apply to transactions above $10,000 sent to overseas providers or self-custody wallets.

The Banco Central do Brasil (BCB) has stated that VASPs must place precautionary holds on funds received above $10,000 in a single transaction or based on a customer's total transactions in a day. Providers will also need to hold other transfers flagged for review under their risk-management policies.

The new measures aim to prevent scams that exploit the speed and cross-border reach of digital assets. Brazil is joining a growing list of jurisdictions tightening crypto safeguards, including Japan, which has introduced anti-scam measures such as restricting withdrawals after customers deposit fiat currency or buy digital assets.