The Central Bank of Brazil has issued a sweeping regulation banning electronic foreign exchange (eFX) providers from using stablecoins, Bitcoin (BTC), and other cryptocurrencies for cross-border transfers. Decision No. 561, published on April 30, updates the rules governing digital international payments, purchases, withdrawals, and remittances. The new regulation takes effect on October 1, and companies will have until 2027 to comply.
Scope and details of the new regulation
Under the updated rules, eFX providers and their foreign partners are permitted to conduct transactions only using conventional foreign exchange or non-resident accounts denominated in Brazilian real. All cryptocurrency-based transactions are explicitly excluded from this process. As a result, Brazilian money transfer services will no longer be able to convert deposited reais into dollars and then transfer them abroad using USDT, USDC, or Bitcoin via blockchain networks.
Importantly, the new regulation does not amount to an outright ban on cryptocurrency trading in the country. Thanks to an earlier decision in effect since February 2024, investors can still buy, sell, store, and transfer crypto assets through authorized digital asset platforms. However, Decision No. 561 blocks eFX firms subject to regulation from using stablecoin infrastructure as a legal payment channel.
Companies and market dynamics affected
The regulation particularly impacts global firms such as Wise, Nomad, and Braza Bank, all of which rely on stablecoin technology for international payments. Nomad, for instance, uses the Ripple blockchain between Brazil and the United States and had finalized transfers with stablecoins. Braza Bank had issued a real-backed stablecoin on the XRP Ledger. These companies will now be forced to restrict their crypto-enabled payment infrastructure.
The Brazilian crypto market generates a monthly volume between $6 billion and $8 billion, with about 90% consisting of stablecoin transactions, serving 25 million local cryptocurrency users.
Brazil ascended to fifth place globally for crypto adoption in 2025, a leap largely attributed to the swift embrace of stablecoins for domestic payments.
New conditions for the eFX sector
From now on, only institutions authorized by the Central Bank of Brazil—including banks, Caixa Econômica Federal, securities and foreign exchange brokers, and licensed payment institutions—may offer eFX services. Firms currently lacking authorization must apply by May 31, 2027 if they wish to continue operations. The regulation also mandates that customer funds be held separately from the company’s funds in bank accounts and requires detailed monthly reporting.
Additionally, the regulation opens the door for eFX providers to expand. Providers can now facilitate transfers connected to both domestic and international financial or capital market investments, provided each transaction does not exceed $10,000. This cap also applies to digital payment solutions.
This decision is widely regarded as the second phase of a broader wave of financial regulation. In March, industry associations representing over 850 companies resisted expanding the IOF financial transaction tax to cover stablecoin transactions.
In summary, while Brazilian regulators continue to allow cryptocurrencies to exist within the country’s financial system, they have made it clear that crypto will not serve as the payment infrastructure for eFX transactions.
