Brazil Slaps 24-Hour Delay on Large Crypto Transfers

Brazil's central bank has announced a new rule requiring a 24-hour delay on cryptocurrency transfers exceeding $10,000 to overseas virtual asset firms or self-custody wallets. The mandate targets single transactions and daily cumulative transfers, preventing users from splitting large amounts into smaller ones to avoid the delay.

The rule aims to slow down the movement of scam proceeds, particularly funds routed through stablecoins, while officials stress that legitimate transfers will not be permanently blocked. Transfers meeting the threshold will face a hold period of up to 24 hours before completion, with additional transactions flagged under existing risk management policies facing extended review.

The central bank tied the mandate directly to a rise in financial scams using virtual assets to move stolen funds quickly, stating that the rule addresses 'the rapid transfer of proceeds from financial fraud through virtual assets, including stablecoins.'