Brazil to hold some crypto transfers up to 24 hours to block fraud

Operators must inform customers that a transfer has been held. They must also keep records of fraud cases, attempted fraud and corrective actions. Under central bank standards, however, transfers can resume even before 24 hours have passed once screening is completed.

Cointelegraph said Brazil's move extends a trend in which countries are strengthening safeguards against fraud that exploits the fast mobility of digital assets and cross-border transmission.

In Japan, the Financial Services Agency and the National Police Agency asked cryptocurrency exchanges to restrict withdrawals immediately after a customer's fiat deposit or digital-asset purchase. They also proposed pre-registering withdrawal addresses, imposing a waiting period before using a new address, setting customer-specific withdrawal limits, enhanced monitoring, phishing-resistant multi-factor authentication, and matching the name of the bank remitter with the name of the cryptocurrency account holder.

Japan's measures, unlike Brazil's rules, are not binding. Exchanges can decide how to apply them depending on their operating model and the risk of misuse.