Brazil Slows Crypto Transfers to Catch Fraud

Brazil's central bank has introduced new regulations for cryptocurrency transfers, requiring exchanges to hold certain transactions for 24 hours before releasing funds. The rule, which takes effect on January 1, 2027, applies to transfers exceeding $10,000 in crypto or stablecoins, as well as smaller transfers flagged by risk controls.

The regulation aims to give exchanges a window of opportunity to catch and prevent fraudulent transactions from disappearing across borders. It's estimated that victims of scams often discover they've been scammed hours or days after the funds have already moved, making it difficult for authorities to recover the stolen money.

Regina Pedroso, president of Brazilian tokenization group Abtoken, has expressed concerns that the policy may impose costs on legitimate users while weakening the competitiveness of domestic exchanges against platforms operating outside Brazil's jurisdiction.