Brazil Central Bank Bars Crypto in Regulated Cross-Border Payments, Sets 2027 Deadline for eFX Firms

TL;DR Brazil’s Banco Central do Brasil (BCB) banned crypto settlement in regulated international payments and set a 2027 deadline for eFX providers to gain approval.

The BCB issued Resolution No. 561, amending the eFX framework that governs cross‑border transfers. Under the new rule, payments between an eFX provider and its foreign counterparty must occur only via a foreign‑exchange transaction or a movement in a non‑resident Brazilian real account; virtual assets, including stablecoins, are expressly prohibited.

Providers not yet on the approved list may continue operating only if they submit an authorization application by May 31 2027. Even after approval, they must still settle through FX rails and cannot use crypto for any leg of the transfer.

BCB Governor Gabriel Galipolo noted that crypto use in Brazil has risen sharply over the past two‑to‑three years, with roughly 90 % of those flows tied to stablecoins such as USDT (market cap ≈ $83 billion) and USDC (≈ $28 billion). Bitcoin (BTC) traded near $27,000, up about 2 % week‑over‑week, while the Brazilian real (BRL) held steady at 5.25 per USD.

The measure does not outlaw crypto transfers outright; it merely removes them from the supervised eFX channel, pushing activity into less‑transparent avenues. Brazil’s foreign‑exchange reserves stand at about $340 billion, and the country’s share of global cross‑border payments—estimated at $150 trillion annually—remains under 1 %.

Market participants will watch whether the deadline spurs a wave of licensing applications or drives stablecoin volume toward peer‑to‑peer platforms and offshore wallets.