REGULATION | Brazil Prohibits Use of Crypto in Regulated Cross-Border FX Payment Settlements

Banco Central do Brasil (Central Bank of Brazil) has barred the use of cryptocurrencies in certain cross-border payment services, tightening oversight of international money transfers conducted through its regulated foreign-exchange framework.

The Banco Central do Brasil said in a resolution published on April 30 2026 that virtual assets, including bitcoin and stablecoins, can no longer be used to settle transactions within the country’s Electronic Foreign Exchange (eFX) system which is used by licensed institutions for cross-border payments and remittances.

Under the new rules, payments and receipts between eFX providers and overseas counterparties must be conducted through traditional foreign-exchange transactions or via Brazilian real accounts held by non-residents, effectively excluding crypto from the settlement layer.

The measure targets regulated payment channels rather than retail crypto activity, meaning individuals can still buy, sell, or hold digital assets, but financial institutions and remittance firms must rely on conventional currency rails when processing international transfers.

The central bank’s move is part of a broader effort to strengthen supervision of cross-border financial flows and reduce risks linked to

• money laundering,
• tax evasion and
• loss of regulatory visibility

associated with crypto-based settlements.

Brazil has been tightening its oversight of the digital asset sector introducing new rules that classify some crypto transactions as foreign-exchange operations and require service providers to operate under stricter regulatory standards.

Stay tuned to BitKE on stablecoin regulation in emerging markets.

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