Brazil Central Bank Prohibits Crypto Use in Regulated Cross-Border Payment Rails

May 1, 2026

Brazil's central bank issued Resolution No. 561 on Thursday prohibiting cryptocurrencies and stablecoins from being used in the country's regulated eFX cross-border payment framework, requiring all international transfers to flow through traditional foreign exchange transactions or regulated Brazilian real accounts. The move does not ban crypto transfers outright but aims to keep cross-border payments within monitored channels, building on November 2025 regulations that mandated virtual asset service providers obtain authorization and comply with anti-money laundering and cybersecurity standards. The restriction is particularly significant given that stablecoins represent around 90% of crypto flow in Brazil, the largest crypto market in Latin America and fifth globally in Chainalysis' 2025 adoption index. The regulatory tightening follows recent actions including blocking prediction market platforms Kalshi and Polymarket and pausing planned crypto taxation consultations.

Central Bank Prohibition of Crypto in Cross-Border Payments

▪Brazil's Banco Central do Brasil aims to keep international transfers within monitored foreign exchange channels through Resolution No. 561.
▪Brazil's Banco Central do Brasil Resolution No. 561 removes digital assets, including stablecoins, from Brazil's regulated cross-border payment framework.
▪Brazil's Banco Central do Brasil Resolution No. 561 amended rules for the eFX framework to require cross-border payments to be processed through traditional foreign exchange transactions or regulated Brazilian real accounts.
▪Brazil's Banco Central do Brasil Resolution No. 561 does not ban crypto transfers outright in Brazil.
▪Brazil's Banco Central do Brasil issued Resolution No. 561 on Thursday prohibiting the use of cryptocurrencies in regulated cross-border payments.

Brazil's Expanding Crypto Regulatory Framework

▪Brazil's Banco Central do Brasil virtual asset service provider rules took effect in February with a nine-month grace period for companies to comply.
▪Brazil's Finance Minister Dario Durigan paused a planned public consultation on crypto taxation in March.
▪Brazil's Banco Central do Brasil extended existing financial sector rules including customer protection, governance, internal controls, cybersecurity, and anti-money laundering standards to crypto firms in November 2025.
▪Brazilian authorities blocked Kalshi and Polymarket last month in a sweeping ban of prediction market platforms citing investor protection and market integrity concerns.
▪Brazil's Banco Central do Brasil categorized virtual asset service providers as intermediaries, custodians, or brokers under November 2025 regulations.
▪Brazil's Banco Central do Brasil mandated in November 2025 that virtual asset service providers obtain authorization to operate.

Brazil's Position as Latin America's Largest Crypto Market

▪Gabriel Galipolo stated there has been a continued surge in domestic crypto usage in Brazil over the past three years.
▪Around 90% of crypto flow in Brazil is linked to stablecoins according to central bank chief Gabriel Galipolo.
▪Brazil remains the largest crypto market in Latin America.
▪Brazil ranked fifth globally in Chainalysis' Global Crypto Adoption Index in 2025, up from 10th in 2024.

Perspective of Central Bank of Brazil

▪Brazil's Banco Central do Brasil designed Resolution No. 561 to bring cross-border payments fully inside the regulated foreign exchange system.
▪Brazil's Banco Central do Brasil seeks to ensure all international transfers remain within monitored foreign exchange channels for regulatory oversight.

Perspective of Brazilian crypto industry

▪Stablecoins account for approximately 90% of crypto flow in Brazil, making their exclusion from regulated cross-border payments particularly impactful for the industry.
▪Virtual asset service providers in Brazil must navigate authorization requirements and a nine-month compliance grace period while being barred from eFX payment rails.

Perspective of Brazilian crypto users

▪Brazilian crypto users can still conduct crypto transfers outside the eFX framework despite Resolution No. 561's prohibition on using cryptocurrencies in regulated cross-border payments.