Brazil to Require 24-Hour Hold on Crypto Withdrawals Above $10,000

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Brazil's central bank will require a 24-hour hold on certain cryptocurrency withdrawals above $10,000 as part of efforts to combat money laundering and financial fraud.

The Block reported on August 9 that the Banco Central do Brasil has issued a rule requiring virtual-asset service providers to delay withdrawals for 24 hours in certain cases when users move assets, after depositing funds into their accounts, to self-custody wallets or overseas crypto platforms.

The rule applies when a single transaction or cumulative daily transfers exceed $10,000. Providers may also impose the same delay on transactions below $10,000 if they judge there is a fraud risk.

Crypto firms must assess a user's risk profile, transaction characteristics, the counterparty and the recipient's country of residence, among other factors. The central bank said the measure is a preventive step to check for fraud, not an attempt to freeze assets.

After 24 hours, providers must immediately approve or reject the transaction. If they place a hold on a transfer, they must tell users the reason and the length of the delay. The rule applies not only to cryptocurrencies such as Bitcoin but also to fiat-backed stablecoins.