Brazil Bars Crypto From Regulated Cross-Border Payment Rails

Crypto News

Brazil's central bank has prohibited the use of virtual assets in its regulated electronic foreign exchange payment channel, tightening rules for cross-border payment providers operating under the country's eFX framework.

Banco Central do Brasil published Resolution BCB No. 561 on Thursday, amending existing eFX rules. The resolution requires that payments and receipts between an eFX provider and its foreign counterpart be carried out exclusively through a foreign exchange transaction or movement in a non-resident Brazilian real account. Virtual assets are explicitly prohibited from that settlement process.

The restriction also applies to eFX providers operating under transitional rules that are not yet listed among approved provider categories. Those firms may continue providing eFX services only if they apply for central bank authorization by May 31, 2027, but their payment and receipt flows must still route through approved foreign exchange rails, not virtual assets.

The resolution does not constitute a blanket ban on crypto transfers in Brazil. It specifically closes off the use of crypto and

within the regulated eFX channel, reinforcing the central bank's effort to keep cross-border payment flows within supervised structures.