Brazil Tightens Crypto Transfer Rules to Curb Fraud

Brazil’s central bank has introduced new anti-fraud rules that will allow certain cryptocurrency transfers to be delayed for up to 24 hours, responding to the growing use of virtual assets to move proceeds from financial scams.

The rules, announced on August 7, 2026, will apply from 2027 to transfers exceeding the equivalent of $10,000 when funds are sent to foreign virtual-asset service providers or self-custody wallets. The threshold may be reached through a single transaction or through a customer’s aggregate transfers during one day.

Risk-Based Delays for Crypto Transfers

Transfers below the threshold may also be delayed when they require closer examination under a provider’s risk-management controls. The central bank said the measure reflects the speed with which virtual assets, including stablecoins, can be used to move funds obtained through fraud before victims or financial institutions can intervene.

The delay is not an asset freeze and does not permanently block a transfer. Its purpose is to provide additional time for crypto firms to assess the customer, transaction and destination before releasing funds. Providers may complete a transfer before the end of the 24-hour period when their review finds no indication of wrongdoing, but the decision must be documented.

Greater Responsibility for Crypto Firms

The measure places more responsibility on virtual-asset service providers to identify transactions that require enhanced scrutiny. Relevant factors may include the customer’s profile, transaction size and pattern, the receiving platform or wallet, and the destination jurisdiction.

Self-custody wallets are specifically included because transfers to wallets controlled directly by customers can move outside the immediate oversight of a regulated exchange. Cross-border transfers to foreign platforms may create similar challenges when institutions have limited visibility over the ultimate recipient or subsequent movement of funds.

Brazil has been expanding its regulatory framework for virtual assets as the use of stablecoins and crypto-based payments grows. The new delay mechanism adds a transaction-level intervention designed to complement customer due diligence, monitoring and fraud controls.

The policy reflects a broader convergence between fraud prevention and AML transaction monitoring. For crypto firms, effective controls increasingly need to combine real-time risk scoring with the ability to pause, investigate and document higher-risk transfers.