Brazil Imposes 24-Hour Hold on Large Crypto Transfers Amid Financial Fraud Concerns

Brazil's central bank has introduced new rules aimed at curbing the use of cryptocurrencies and stablecoins to move funds obtained through financial fraud. The regulations require crypto exchanges to delay certain customer transfers by up to 24 hours, effective January 1, 2027.

The rule applies to transfers exceeding the equivalent of $10,000, whether in a single transaction or several that add up on the same day. Smaller transfers can also be flagged for a hold if an exchange's risk review system considers them suspicious.

Crypto exchanges must notify customers when a transfer has been placed on hold and document the reasoning behind any decision to release funds early. The rule gives exchanges more direct responsibility for assessing risk based on the customer, transaction, counterparty, and destination jurisdiction.