Brazil Central Bank Prohibits Use of Virtual Assets for Settlements in Regulated eFX Cross-Border Payment Channels

On May 1, the Central Bank of Brazil issued Resolution No. 561, prohibiting the use of virtual assets for settlements in regulated electronic foreign exchange (eFX) international payment and transfer services. The new regulation requires that payments or receipts between eFX service providers and foreign counterparties must be completed through foreign exchange transactions or non-resident Brazilian real accounts. This restriction also applies to eFX service providers that are in a transitional period and have not yet been approved. The rule does not impose a complete ban on cryptocurrency transfers in Brazil but excludes virtual assets and stablecoins from regulated eFX channels.

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