Brazil Slaps Crypto Transfers With 24-Hour Hold

Brazil's central bank has introduced new rules to curb crypto-related fraud. The regulations require virtual asset service providers (VASPs) to temporarily freeze certain transfers for up to 24 hours before sending funds to foreign platforms or self-custody wallets.

The precautionary hold is designed to give firms time to review suspected fraud and illicit behavior. The initial trigger for the hold is a transfer amount exceeding $10,000, either as a single transaction or based on the customer's total activity in a day.

In addition to the threshold, VASPs must also place holds on other transfers flagged for enhanced scrutiny under their risk-management systems.