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BCB targets eFX rails
Brazil’s central bank has barred cryptocurrencies from being used to settle cross-border payments inside regulated electronic foreign exchange, or eFX, channels, tightening control over international transfers without banning crypto ownership or trading outright.
“BCB Resolution No. 561, published April 30”
The restriction applies to “eFX providers” and takes effect October 1, according to CoinDesk’s account of the rule, which it says is set out in “BCB Resolution No. 561, published April 30.”
CoinDesk reports that the ban closes the “back-end payment rail for cross-border flows,” while still allowing “individual crypto investors” to “buy and hold assets.”
Crypto-related activity is not fully shut down: CoinDesk says the rule “does not ban crypto trading,” and that investors can still “buy, sell, hold and transfer cryptocurrency through authorized virtual asset service providers under Resolution BCB No. 521.”
CoinCentral similarly describes the measure as prohibiting “the use of cryptocurrencies and stablecoins inside regulated cross-border payment channels,” while stating it “does not ban crypto transfers, trading, personal holdings, or peer-to-peer activity in Brazil.”
CriptoNoticias frames the same restriction as requiring that “external payments be settled only in reais or in authorized foreign currencies,” and says the regulation “prohibits the use of bitcoin (BTC), and any other digital asset including stablecoins and other cryptocurrencies, in the settlement of these operations.”
What changes in practice
Under the new framework, regulated cross-border payments must be settled through traditional foreign exchange transactions or through non-resident real accounts, with crypto assets barred as the settlement mechanism.
CoinDesk says payments “between an eFX provider and its foreign counterparty must move through a foreign exchange transaction or a non-resident real-denominated account in Brazil, with cryptocurrencies barred as an option.”
It adds that a remittance firm “cannot take reais from a customer, convert the funds into USDT, USDC or bitcoin and settle the payment abroad on a blockchain.”
CoinCentral describes the same operational boundary more directly, saying “payments or receipts between an eFX provider and a foreign counterparty must use approved foreign exchange mechanisms,” and that “Crypto assets, including stablecoins, cannot be used for those payments and receipts.”
CriptoNoticias similarly reports that “payment or receipt between eFX service providers and their counterparties abroad must be carried out exclusively through traditional foreign exchange operations or movements in non-resident reais accounts.”
The restriction also includes a transaction cap tied to certain categories of activity: CriptoNoticias says the regulation “imposes a cap of USD 10,000 (or its equivalent) for transfers related to investments in the securities market and for the purchase of goods through non-integrated digital solutions.”
Deadlines and compliance
The central bank’s rule also sets a compliance timeline for firms that are not yet authorized under the eFX framework, and it requires reporting and segregation of client funds.
“Unauthorized firms must apply for BCB approval by May 2027”
CoinDesk says “Unauthorized firms must apply for BCB approval by May 2027,” and it adds that “adaptation deadlines running into 2027.”
CoinCentral says “Companies that are not yet approved eFX providers may continue operating during a transition period if they seek central bank approval by May 31, 2027.”
CriptoNoticias is more specific about the consequences of missing the deadline, saying that if an institution “fails to submit this application on time or if its permit is denied or archived permanently, the regulation is blunt because the entity must cease providing eFX services within thirty days.”
CoinDesk also reports that the resolution “restricts eFX to BCB-authorized institutions,” listing “banks, Caixa Econômica Federal, securities and FX brokers, and payment institutions acting as e-money issuers or acquirers.”
It further says that “Firms without authorization can keep operating but must apply by May 31, 2027,” and that they “must use segregated accounts for client funds and file detailed monthly reports.”
Why stablecoins are targeted
The sources tie the restriction to stablecoin-heavy usage in cross-border flows and to concerns about oversight, taxation, money laundering controls, and monetary sovereignty.
CoinDesk says Brazil’s crypto market is “moving $6 billion to $8 billion a month,” and that “stablecoins accounting for roughly 90% of volume,” citing “Receita Federal data.”
CoinCentral similarly states that “Around 90% of reported crypto flows in Brazil have been linked to stablecoins,” and says regulators have raised concerns over “taxation, capital flows, money laundering controls, reserve backing, and oversight gaps.”
Crypto.news describes the policy as “a hard boundary” that keeps crypto out of the supervised eFX system, saying authorities estimate “about 90% of cross-border remittances involve stablecoins” and that the central bank worries this could undermine “both its AML regime and the effectiveness of FX supervision.”
CriptoNoticias attributes the restriction to preventing “unregulated assets from undermining the control,” and says the regulator intensified pressure on Congress to restrict stablecoins issued by foreign companies “such as Tether (USDT) and Circle (USDC).”
CoinDesk also frames the regulatory push as drawing “a line for crypto to exist in the market, but not as eFX settlement infrastructure,” and it notes that in March “industry associations representing more than 850 companies pushed back against extending Brazil's IOF financial transaction tax to stablecoin operations.”
Ripple and the next moves
The rule’s “ring-fencing” approach—allowing crypto activity while separating it from regulated cross-border settlement—has immediate implications for companies building payment and custody infrastructure in Brazil.
“Nomad, for example, uses Ripple's network to move funds between Brazil and the U.S. and settle in stablecoins”
CoinDesk says the change targets companies that “had built stablecoin settlement into cross-border flows,” and it gives examples: “Nomad, for example, uses Ripple's network to move funds between Brazil and the U.S. and settle in stablecoins,” while “Braza Bank issued a real-backed stablecoin on the XRP Ledger.”
Invezz reports that Ripple is responding by seeking a license from Brazil’s central bank, saying Ripple “plans to apply for a license in Brazil as it expands its regulated crypto services,” and that it will “apply for a Virtual Asset Service Provider (VASP) license from the Central Bank of Brazil.”
Invezz also ties Ripple’s product strategy to Brazil’s regulatory framework, stating that “This framework should bring clearer rules for custody, trading and cross-border transfers of digital assets.”
The same source describes Ripple’s integrated platform as combining “payments, custody and trading for institutions,” and it says Ripple’s expansion is driven by acquisitions including “the $1.25 billion purchase of prime brokerage Hidden Road and a $1 billion deal for corporate treasury software GTreasury.”
Meanwhile, the broader policy direction is echoed by the Caisse des Dépôts piece, which discusses how payment infrastructures like SWIFT, Fedwire, and CHIPS function under sanctions regimes and extraterritorial laws, describing SWIFT as “the global infrastructure under American-European control” and noting that “Nearly 95% of payments processed by CHIPS are cross-border.”
