With a new regulation published on April 30, the Central Bank of Brazil banned electronic foreign exchange (eFX) providers operating within the country from making money transfers abroad using stablecoins, bitcoin and other cryptocurrencies. Resolution 561 updates the rules for digital international payments, purchases, withdrawals and transfers. The regulation in question will come into force on October 1, and companies are given until 2027 to comply.
Scope and details of the new regulation
According to the changes, only foreign currency transactions or real accounts belonging to non-residents of Brazil can be used in transactions between eFX providers and their counterparts abroad. Cryptocurrencies were excluded from this process. Thus, a money transfer company in Brazil will not be able to convert the real deposited by the customer into dollars and transfer it abroad on the blockchain with USDT, USDC or bitcoin.
The decision does not directly ban cryptocurrency trading in the country. Thanks to another decision in force since February 2024, investors can buy, sell, store and transfer crypto on authorized digital asset platforms. However, decision number 561 prevents regulated eFX companies from using the stablecoin infrastructure as a legal payment channel.
Affected companies and market dynamics
Companies that rely on stablecoin technology for international payments, such as Wise, Nomad and Braza Bank, were especially affected by the regulation. Nomad was using the Ripple blockchain for transfers between Brazil and the USA and finalizing the transactions with the stablecoin. Braza Bank, on the other hand, had issued a real-backed stablecoin on the XRP Ledger. These companies will now have to limit their crypto-based payment infrastructures.
The Brazilian crypto market generates monthly volume between $6 and $8 billion; Approximately 90% of this consists of stablecoin transactions, and 25 million people use cryptocurrencies in the country.
Brazil rises to fifth place globally in crypto adoption by 2025. This increase was driven by the rapid adoption of stablecoins in payments in the country.
New conditions imposed on the eFX industry
With the new regulation, only institutions authorized by the Brazilian Central Bank—banks, Caixa Econômica Federal, securities and foreign exchange brokerage companies and payment institutions—will now be able to offer eFX services. In order for unauthorized companies to continue their activities, they will need to apply until May 31, 2027. In addition, it became mandatory to keep customer funds separately outside the bank and to submit detailed monthly reports.
The regulation also allows for a new expansion in the eFX field. Providers will now be able to act as intermediaries in transfers related to both domestic and international finance and capital market investments, limited to 10 thousand dollars per transaction. This limitation will also apply to digital payment solutions.
The decision is considered the second step in a broader wave of financial regulation. In March, industry associations representing more than 850 companies opposed the expansion of the financial transaction tax called IOF on stablecoin transactions.
As a result, Brazilian regulators have allowed cryptocurrencies to exist in the country’s financial system, while clearly opposing using them as the payment infrastructure for eFX transactions.
