Brazil’s central bank updated its foreign exchange rules to restrict the use of crypto assets in regulated cross border payments, tightening oversight of stablecoin based settlement inside the country’s eFX framework.

The Banco Central do Brasil published Resolution BCB No. 561 on April 30, changing rules for eFX, a regulated model used for digital international payments, purchases, withdrawals, and transfers.

The new rule says payments or receipts between an eFX provider and its foreign counterparty must happen exclusively through traditional foreign exchange operations or through Brazilian real accounts held by non-residents, with virtual assets prohibited in that flow.

The restriction means an eFX provider cannot use stablecoins, Bitcoin, or other virtual assets as the settlement rail for the offshore leg of a regulated international payment. In practice, a remittance provider cannot receive reais from a Brazilian client, convert the funds into USDT, USDC, Bitcoin, or another digital asset, and settle the transaction abroad through blockchain rails under the eFX model.

The move does not amount to a broad crypto ban in Brazil. Investors and companies can still buy, sell, custody, and transfer crypto assets under existing rules, but eFX providers will not be allowed to use those assets as infrastructure to settle payments with foreign counterparties inside the regulated eFX system.

The rule adds to Brazil’s broader effort to bring crypto activity into the supervised financial system. In November, the central bank released long awaited rules for virtual asset service providers, extending anti-money laundering, terrorism financing, consumer protection, transparency, governance, and reporting obligations to the sector. Those rules are set to take effect in February.

Brazilian authorities have been especially focused on stablecoins. Crypto transactions in Brazil reached 227 billion reais, or about $42.8 billion, in the first half of 2025, up 20% from a year earlier. USDT accounted for two thirds of that volume, while Bitcoin represented 11%.

The central bank has also classified purchases, sales, and exchanges of fiat pegged virtual assets as foreign exchange operations under the broader framework. That classification also covers international payments and transfers using virtual assets, including transactions tied to card settlements or other electronic payment methods.

Resolution 561 also expands the scope of eFX by allowing transfers related to investments in financial and capital markets in Brazil or abroad, capped at the equivalent of $10,000 per transaction. The same limit applies to certain digital payment solutions that are not integrated with ecommerce platforms.

Companies that currently offer international payment services without central bank authorization may continue operating temporarily, but they must apply for authorization by May 31, 2027. Authorized institutions that already provide eFX services must update their registration with the central bank’s Unicad system by October 30, 2026.

The new rules also require segregated accounts for eFX related client funds, monthly reporting through the central bank’s foreign exchange system, and transaction record keeping for 10 years. The central bank said the measures are aimed at improving traceability and strengthening safeguards against illicit financial activity.