Brazil’s central bank has banned electronic foreign exchange (EFX) providers from using stablecoins, Bitcoin or other cryptocurrencies to settle foreign remittances.
BCB Resolution No. 561, published on April 30, updates the rules for eFX, Brazil’s regulated system for digital international payments, purchases, withdrawals and transfers. The rule will take effect October 1, with the deadline for adaptation running through 2027.
Payments between an EFX provider and its foreign counterparty must take place through foreign currency transactions or a non-resident real-value account in Brazil, with cryptocurrencies prohibited as an option.
A remittance firm cannot take remittances from a customer, convert funds into USDT, USDC or Bitcoin and cannot settle payments abroad on the blockchain.
The rule does not ban crypto trading. Investors can still buy, sell, hold and transfer cryptocurrencies through authorized virtual asset service providers under Resolution BCB No. 521, which took effect on February 2. Resolution 561 shuts down the back-end payment rails used by regulated EFX firms.
The changes target companies like Wise, Nomad and Brezza Bank that had built stablecoin settlements to facilitate cross-border flows. Nomad, for example, uses Ripple’s network to transfer funds between Brazil and the US and settle in stablecoins, while Brezza Bank released a real-backed stablecoin on the XRP ledger.
According to Recita federal data, Brazil’s crypto market is growing at $6 billion to $8 billion per month, with stablecoins accounting for about 90% of the volume. The country ranked fifth in global crypto adoption in 2025, up from tenth place a year ago. Approximately 25 million Brazilians hold or transact crypto.
The proposal limits eFX to BCB-authorized institutions: banks, Caixa Económica Federal, securities and FX brokers, and payment institutions acting as e-money issuers or acquirers. Companies without authorization can continue to operate, but they must apply by May 31, 2027. They must use separate accounts for client funds and file detailed monthly reports.
Resolution 561 extends the EFX in one direction. Providers can now handle transfers involving financial and capital markets investments in Brazil or abroad, with a limit of $10,000 per transaction. The same limitation also applies to digital payment solutions that are not integrated with e-commerce platforms.
The rule is the second prong in a broader regulatory effort. In March, industry associations representing more than 850 companies protested the extension of Brazil’s IOF financial transaction tax to stablecoin operations.
Brazil’s regulator is drawing a line over the existence of crypto in the market, but not as an EFX settlement infrastructure.