Brazil Imposes 24-Hour Hold on Crypto Transactions Over $10,000

Brazil's central bank has implemented a new rule requiring Virtual Asset Service Providers (VASPs) to hold certain cryptocurrency and stablecoin transactions for up to 24 hours before processing them. This delay applies to transfers of $10,000 or more, either in a single transaction or aggregated daily, that are destined for offshore virtual asset entities or self-hosted wallets. VASPs can also apply the hold to other transactions flagged by their own risk management policies.

The central bank emphasized that this 24-hour hold is not intended as a freeze or block on funds, but rather a compliance check before releasing the funds. Once the risk assessment is completed, the VASP can release the funds before the 24-hour period expires. Clients must be informed about any holds, and VASPs are required to maintain records of fraud incidents, attempted fraud, and corrective measures taken.

The new rule aims to combat financial fraud by preventing rapidly moving funds obtained through illicit means to offshore destinations or self-hosted wallets. The central bank pointed out that the use of virtual assets, including stablecoins, has increased, making prevention and recovery more challenging.