Brazil central bank restricts crypto use in regulated cross border payments

Brazil's central bank has updated its foreign exchange rules, specifically Resolution BCB No. 561, to restrict the use of cryptocurrency assets in regulated cross-border payments. This new regulation prohibits the use of virtual assets, including stablecoins and Bitcoin, as settlement rails for the offshore portion of international payments within the country's eFX framework. While this does not constitute a general ban on crypto in Brazil, it prevents eFX providers from using digital assets to settle transactions with foreign counterparties. The move aligns with Brazil's broader efforts to integrate crypto activities into its supervised financial system, following earlier regulations for virtual asset service providers and a focus on stablecoins, which constitute a significant portion of crypto transactions in the country. The resolution also expands the scope of eFX for investment transfers and sets deadlines for companies to obtain authorization or update their registrations, while mandating segregated accounts and enhanced record-keeping to improve traceability and combat illicit financial activity.

(Source：Crypto Briefing)