Brazil Proposes 24-Hour Hold on Large Stablecoin Transfers

Brazil's central bank is considering a proposal that would require virtual asset service providers to hold stablecoin transfers for up to 24 hours when the amount exceeds $10,000. The proposed measure aims to curb potential scams by allowing exchanges to review transactions before releasing funds.

The proposal does not apply only to cross-border transfers but also includes self-custody wallets. This means that a Brazilian crypto holder moving coins from an exchange to a private wallet could be delayed if the amount exceeds $10,000. The ABToken association has pushed back against the proposal, arguing that it treats clean and suspicious transfers equally without actually showing risk.

The central bank is trying to strike a balance between preventing scams and not over-regulating legitimate transactions. If implemented, this rule could set a precedent for other regulators around the world.