Crypto News: Brazil Drops New Crypto Transfer Rule That Could Delay $10K+ Transactions

The same delay may apply to other transactions that require additional scrutiny under existing risk-management policies. The central bank linked the measure to the growing use of virtual assets in financial fraud. It specifically identified stablecoins as part of that activity.

The announcement on the crypto news adds another layer to Brazil’s expanding digital asset oversight. In 2023, Brazil enacted a legal framework requiring cryptocurrency exchanges and service providers to register with the central bank.

Crypto News Highlights New 24-Hour Review Window

The crypto rule will affect transactions sent to overseas virtual asset service providers and self-custody wallets. As per the report, a customer sending $15,000 worth of Bitcoin to an overseas self-custody wallet could therefore face a delay. Businesses sending large crypto payments to foreign companies could face the same review process.

Transfers below the $10,000 threshold remain unaffected by the specific rule. However, the limit can also consider a customer’s total transfers during a single day. This means several smaller transactions could collectively reach the level that triggers additional scrutiny.

Stablecoins have received particular attention because they can move large amounts across borders quickly. Brazilian authorities said criminals have used virtual assets to transfer proceeds from financial scams.

In addition, crypto platforms operating in Brazil will need systems that identify qualifying transactions. Those systems must also track customers’ cumulative daily transfer volumes. Platforms will then need to hold flagged transactions during the applicable review period.

Brazil Sets 2027 Start Date for New Crypto Rules

The central bank has set 2027 as the starting point for the new requirements, Reuters reported. However, it has not provided an exact implementation date. The timeline gives financial institutions and crypto platforms time to amend their auditing systems.

In addition, the measures could also impact how customers handle larger international crypto transfers. Users and businesses sending funds abroad may need to account for expected delays when preparing transactions above the mark.

The country’s latest measure specifically introduces a temporary review period for certain large transfers.