The Central Bank of Brazil has introduced a 24-hour precautionary hold on certain cryptocurrency transfers exceeding $10,000, in a move intended to help prevent fraud and other illicit activity involving digital assets.
The new requirement applies to institutions operating within the Brazilian Payment System that provide services involving digital assets. It was set out in Resolution 584 of 2026, issued by the Central Bank of Brazil on Friday, which amends Resolution 142 of 2021.
Under Article 2-B, affected institutions “can only execute transfer orders for digital assets 24 hours after receiving funds” when the transfers are sent to foreign virtual asset service providers (VASPs) or self-custody wallets.
The hold applies where the funds “exceed the value of US$10,000.00 or its equivalent in other currencies per transaction or the total value of transactions carried out on the same day on behalf of the customer.”
The Central Bank of Brazil said the measure was designed as a preventive safeguard rather than a penalty. The 24-hour period will allow VASPs to carry out a risk assessment of the movement of funds and apply their internal policies.
Service providers will be able to release the money before the end of the 24-hour period if they conclude that the transaction presents no risks. Customers must also be kept informed about the status of their funds throughout the process.
The resolution introduces a further reporting obligation for crypto companies. VASPs “must keep daily records detailing occurrences of fraud or attempted fraud in the provision of payment services and of services of virtual assets, including detailing the corrective measures adopted.”
The bank said the changes “strengthen the protection of financial services users and contribute to the safe development of the virtual asset market in Brazil.”
The rules will come into force on 1 January 2027. They follow a public consultation on the proposals that ended on 2 July and attracted strong criticism from Brazilian cryptocurrency organisations.
Abcrypto, one of the country’s largest crypto associations, represents companies including Binance, Coinbase, Crypto.com and Tether. The organisation argued that a retention period would not alter the behaviour of people using digital assets for illicit purposes.
Instead, it said, the measure could harm legitimate institutions and customers that rely on cryptocurrency as a faster alternative to the traditional financial system.
The Central Bank of Brazil said the new controls reflect the growing use of digital assets to move money rapidly in cases of financial fraud. The resolution is part of its wider effort to limit criminal use of the sector while allowing the virtual asset market to develop under formal oversight.
Meanwhile, Congress is preparing to consider Bill 4308/2024, which would regulate the status of stablecoins. The cryptocurrency industry opposes designating them as…
