The Central Bank of Brazil has introduced restrictions on electronic foreign exchange (eFX) providers, prohibiting the use of stablecoins, bitcoin, or other cryptocurrencies for settling international remittances. BCB Resolution No. 561, published on April 30, revises regulations governing eFX, Brazil’s system for regulated digital cross-border payments, transfers, and transactions. The regulation is set to be enacted from October 1, with a phased adaptation period extending into 2027.
Cross-border payments between an eFX provider and its foreign counterpart must now occur via traditional foreign exchange transactions or through non-resident real-denominated accounts within Brazil, explicitly excluding cryptocurrencies as a settlement option. Consequently, remittance companies are barred from converting Brazilian reais into USDT, USDC, bitcoin, or any cryptocurrency for overseas settlements on blockchain platforms.
Despite these limitations, the rule does not entirely prohibit crypto trading; investors remain free to buy, sell, hold, and transfer cryptocurrencies through authorized virtual asset service providers under Resolution BCB No. 521, which became effective on February 2. Resolution 561 specifically targets the elimination of cryptocurrency-based settlement mechanisms used by regulated eFX firms.
This regulatory adjustment impacts companies such as Wise, Nomad, and Braza Bank that integrated stablecoin settlements into their cross-border transactions. For instance, Nomad utilizes Ripple’s network for fund transfers between Brazil and the U.S., settling in stablecoins, while Braza Bank has issued a real-backed stablecoin on the XRP Ledger.
With the Brazilian crypto market processing approximately $6 billion to $8 billion monthly, where stablecoins constitute about 90% of this volume according to Receita Federal data, the country was ranked fifth globally for crypto adoption in 2025, an increase from tenth place the prior year. Approximately 25 million Brazilians are involved with cryptocurrencies, either holding or transacting.
Resolution 561 also limits eFX operations to entities authorized by BCB, including banks, Caixa Econômica Federal, securities and FX brokers, and payment institutions functioning as e-money issuers or acquirers. Firms lacking authorization may continue operations but must seek approval by May 31, 2027, ensuring client funds are held in segregated accounts and submitting detailed monthly reports.
The regulation broadens the scope of eFX services to include transfers linked to financial and capital market investments both domestically and internationally, with a cap of $10,000 per transaction. This limit also applies to digital payment solutions that do not integrate with e-commerce platforms.
This rule represents part of a larger regulatory initiative. In March, industry associations representing over 850 companies opposed the extension of Brazil’s IOF financial transaction tax to stablecoin operations. The Central Bank is delineating crypto’s role in the market, permitting its presence but prohibiting it as an infrastructure for eFX settlements.