Brazil Imposes 24-Hour Delay on Large Crypto Transfers to Combat Fraud

Brazil's central bank has announced a new regulation that will impose a 24-hour delay on certain crypto transfers in the country. The rule, which takes effect on January 1, 2027, requires exchanges to hold transfers for up to a day before allowing them to proceed.

The regulation targets outbound transfers from Brazilian exchanges to self-custody wallets or foreign crypto firms, particularly those exceeding $10,000 in value. Smaller transfers can still be delayed if an exchange's risk controls flag them as suspicious.

The central bank's reasoning behind the rule is to give banks and exchanges a chance to intervene before stolen funds disappear abroad or into self-custody wallets. However, some industry experts have expressed concerns that the policy could impose costs on legitimate users while weakening domestic exchanges' competitiveness.