The Brazilian Central Bank has taken a new step banning the use of cryptocurrencies in regulated cross-border payments. The decision is part of a broader regulatory effort aimed at keeping international money transfers entirely within the country's foreign exchange (FX) system. With Decree No. 561, published on Thursday, the rules for Brazil's electronic foreign exchange (eFX) framework have been updated. Accordingly, cross-border payments are now only permitted through traditional foreign exchange transactions or regulated accounts held by foreign parties in Brazilian real. This regulation excludes crypto assets (including stablecoins) from this payment system. However, the scope of the decision does not directly mean a crypto ban. Crypto transfers are not completely prohibited in Brazil; instead, crypto assets are being removed from the official and regulated payment infrastructure. This approach reflects the Central Bank's desire to conduct international money movements through more tightly monitored and controlled channels.
Regulations are gradually expanding
Recently, the increase in the use of stablecoins, in particular, has drawn the attention of regulatory bodies to this area. Brazil stands out as Latin America's largest cryptocurrency market, and the role of digital assets in daily financial transactions is steadily increasing. This growth also brings with it the need for more comprehensive regulation. Indeed, the country has taken significant steps in regulating the crypto sector in recent years. In November 2025, virtual asset service providers were required to obtain official licenses to operate.
With this regulation, crypto companies were subjected to standards applicable in the financial sector, such as customer protection, corporate governance, internal control mechanisms, cybersecurity, and anti-money laundering. Companies were classified as intermediaries, custodians, or brokers, and a nine-month compliance period was granted for the implementation of the rules. On the other hand, regulatory activity in the country did not stop there. In March, Brazilian Finance Minister Dario Durigan temporarily halted a planned public consultation on crypto taxation. Subsequently, authorities also blocked prediction market platforms such as Kalshi and Polymarket, citing investor protection and market integrity. All these developments indicate that Brazil is moving towards a more cautious and control-oriented approach to the crypto ecosystem.
The country attracted attention by rising to fifth place in the Chainalysis Global Crypto Adoption Index in 2025; this represents a significant jump compared to tenth place in 2024. Brazilian Central Bank Governor Gabriel Galipolo also emphasized in recent statements that crypto usage in the country has increased significantly in the last three years. According to Galipolo, approximately 90% of these transactions are linked to stablecoins.
