Brazil's Central Bank Mandates 24-Hour Delay on Cryptocurrency Transfers to Combat Fraud

Brazil's central bank announced new anti-fraud regulations mandating that cryptocurrency transfers exceeding $10,000 to foreign firms or self-custody wallets be delayed for up to 24 hours. Effective January 1, 2027, the rules aim to curb the rapid movement of illicit funds from financial scams, particularly involving stablecoins. Virtual asset service providers must assess transaction risks and notify customers of delays, though they retain the authority to release funds early if risk parameters are met.

24-hour cryptocurrency transfer delay

• ▪The 24-hour cryptocurrency transfer delay is not a permanent asset freeze, and institutions can release funds early if risk parameters are met.
• ▪Brazil's central bank announced rules allowing virtual asset service providers to delay certain cryptocurrency transfers for up to 24 hours to perform risk analyses.

Fraud prevention rationale

• ▪Brazil's central bank introduced the delay to combat the rapid movement of illicit funds from financial scams using virtual assets, including stablecoins.
• ▪Scammers frequently transfer illicit funds to foreign virtual asset firms or self-custody wallets, making tracking and recovery difficult for authorities.

Transaction threshold criteria

• ▪The $10,000 threshold can be calculated based on a single transaction or the cumulative total of a customer's transfers within a single day.
• ▪The 24-hour delay applies to cryptocurrency transfers exceeding $10,000 sent to foreign virtual-asset firms or self-custody wallets.

Risk assessment factors

• ▪Transactions below the $10,000 threshold may also be delayed for up to 24 hours if they require closer scrutiny under an institution's risk-management policies.
• ▪Virtual asset service providers must evaluate the customer's risk profile, transaction characteristics, counterparty, and destination jurisdiction to determine if a transfer requires retention.

Implementation timeline

• ▪Brazil's central bank may extend the 24-hour delay period or apply it to transactions under $10,000 if an institution fails to comply with the rules.
• ▪The new cryptocurrency transfer regulations issued by Brazil's central bank on August 7, 2026, are scheduled to take effect on January 1, 2027.

Institutional compliance requirements

• ▪Virtual asset service providers in Brazil must notify customers when their transactions are delayed and document any decisions to release funds early.
• ▪Financial institutions must register all occurrences and attempts of fraud involving virtual assets, along with the corrective measures taken to address them.