Brazil Introduces Precautionary Crypto Transfer Holds for Fraud Prevention

Brazil's central bank is introducing new measures to prevent crypto-related fraud. Starting January 1, 2027, virtual asset service providers (VASPs) will be required to place precautionary holds of up to 24 hours on certain transfers to foreign platforms or self-custody wallets. The hold applies to transactions above $10,000 sent in a single transaction or based on a customer's total transactions in a day.

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

The authorities have also called for platforms to require customers to preregister withdrawal addresses and impose a waiting period before newly added addresses can be used. The Brazilian central bank will require VASPs to notify customers of holds and keep records of fraud incidents, attempted fraud, and corrective actions.