Brazil Mandates Crypto Transfer Holds as Fraud Crackdown Continues

Brazil's central bank has introduced new rules aimed at preventing crypto fraud. From 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 measures apply to funds received above $10,000 in a single transaction or based on a customer's total transactions in a day. Providers must also hold other transfers requiring further scrutiny under their risk-management policies.

The rules are part of Brazil's effort to join the global push against crypto scams. Other jurisdictions have introduced similar measures, including Japan, where authorities asked crypto exchanges to restrict withdrawals after customers deposit fiat currency or buy digital assets.