Brazil Central Bank Bans Virtual Assets in eFX Settlements

Brazil's central bank has prohibited the use of virtual assets, including stablecoins, for settling transactions within the country's regulated electronic foreign exchange, or eFX, payment infrastructure, as part of efforts to enhance oversight of cross-border payments.

The Banco Central do Brasil issued Resolution BCB No. 561 on Thursday, updating rules for authorized international payment service providers. Under the new provisions, payments and receipts between eFX providers and foreign counterparties must occur exclusively through foreign exchange transactions or movements in nonresident Brazilian real accounts. Virtual assets are explicitly barred from these supervised channels, which govern regulated cross-border transfers.

The resolution applies immediately to approved eFX providers and includes transitional rules for unauthorized firms. Those companies may continue operations while seeking central bank authorization, provided they submit applications by May 31, 2027. During this period, they must adhere to the same settlement requirements, excluding cryptocurrencies.

Officials emphasized that the measure does not impose a blanket ban on cryptocurrency activity in Brazil....