Brazil’s central bank has banned electronic foreign exchange (eFX) providers from using stablecoins, Bitcoin and other cryptocurrencies to settle international remittances.
BCB Resolution No. 561, issued on April 30, updates the rules for eFX, Brazil’s regulatory system for digital international payments, purchases, withdrawals and remittances. The regulation will go into effect on October 1st and will be applicable until 2027.
Payments between eFX providers and foreign counterparties must be made via foreign exchange transactions or real-denominated accounts of non-residents of Brazil, and virtual currencies are prohibited as an option.
Money transfer companies cannot accept reals from customers, convert the funds into USDT, USDC, or Bitcoin and settle payments on the blockchain overseas.
This regulation does not prohibit virtual currency trading. Investors can continue to buy, sell, hold, and transfer cryptocurrencies through licensed virtual asset service providers under Resolution BCB No. 521, which took effect on February 2. Resolution 561 shuts down the backend payment rails used by regulated eFX firms.
The changes target companies such as Wise, Nomad, and Braza Bank, which have integrated stablecoin payments into cross-border flows. For example, Nomad uses Ripple’s network to move funds between Brazil and the US and settle with stablecoins, while Braza Bank has issued physically backed stablecoins on the XRP Ledger.
Brazil’s cryptocurrency market moves between $6 billion and $8 billion per month, with stablecoins accounting for about 90% of trading volume, according to data from the Federal Republic of Receita. The country will rank fifth in global cryptocurrency adoption in 2025, up from 10th place the previous year. Approximately 25 million Brazilians own or trade cryptocurrencies.
The resolution limits eFX to BCB-accredited institutions: banks, Caixa Economica federations, securities and exchange brokers, and clearinghouses acting as issuers or acquirers of electronic money. Unlicensed businesses can continue to operate, but must apply by May 31, 2027. Customers must use segregated accounts for their funds and submit detailed monthly reports.
Resolution 561 scales eFX in one direction. Providers can now process remittances related to financial capital market investments within and outside Brazil, up to $10,000 per transaction. The same restrictions apply to digital payment solutions that are not integrated with e-commerce platforms.
This rule is the second piece of broader regulatory enforcement. In March, an industry group representing more than 850 companies opposed extending Brazil’s IOF financial transaction tax to stablecoin businesses.
Brazilian regulators have drawn the line where cryptocurrencies exist in the market, but not as eFX payment infrastructure.
