Brazil Slaps Crypto Transfers with 24-Hour Hold Requirement

Brazil's central bank is implementing new measures to combat cryptocurrency scams by requiring virtual asset service providers (VASPs) to place precautionary holds on certain transfers. Starting January 1, 2027, VASPs must hold transfers above $10,000 to foreign platforms or self-custody wallets for up to 24 hours.

The measure aims to prevent fraud and adds Brazil to a growing list of jurisdictions tightening crypto safeguards. The requirement also applies to transfers flagged for review under risk-management policies. Providers must notify customers of holds and keep records of fraud incidents, attempted fraud, and corrective actions.

Brazil's move follows anti-scam measures introduced in other jurisdictions, including Japan, where authorities asked crypto exchanges to restrict withdrawals after customers deposit fiat currency or buy digital assets. However, the Japanese measures are not binding, and exchanges can determine implementation based on their operations and exposure to misuse.