Brazil’s central bank has banned electronic foreign exchange (eFX) providers from using stablecoins, bitcoin or other cryptocurrencies to settle remittances abroad.

BCB Resolution No. 561Published on April 30, updates regulations for eFX, Brazil’s regulated system for digital international payments, purchases, withdrawals and transfers. The rule will take effect on October 1, with a compliance deadline running through 2027.

Payments between an eFX provider and its foreign counterparty must be transferred through a foreign exchange transaction or a non-resident real account in Brazil, with cryptocurrencies barred as an option.

A remittance firm cannot charge a customer, convert funds into USDT, USDC or Bitcoin and settle overseas payments on the blockchain.

The rule does not prohibit 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 back-end payment rails used by regulated eFX firms.

The change targets companies like Wise, Nomad and Braza Bank that built stablecoin settlements for cross-border flows. For example, Nomad uses Ripple’s network to transfer funds between Brazil and the US and settle in stablecoins, while Braza Bank released a real-backed stablecoin on the XRP ledger.

Brazil’s crypto market is moving $6 billion to $8 billion a month, with stablecoins accounting for about 90% of the volume, per Receta federal data. The country ranked fifth in global crypto adoption in 2025, up from tenth a year ago. About 25 million Brazilians hold or transact in crypto.

The resolution also limits eFX to entities authorized by the BCB: banks, Caixa Econômica Federal, securities and FX brokers, and payment institutions acting as issuers or acquirers of e-money. Firms without permission can continue to operate but 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 linked to financial and capital market investments in Brazil or abroad, limited to a limit of $10,000 per transaction. The same limitation applies to digital payment solutions that are not integrated with e-commerce platforms.

The rule is another front in a broader regulatory push. In March, industry associations representing more than 850 companies pushed back against extending Brazil’s IOF financial transaction tax to stablecoin operations.

Brazil’s regulator is drawing a line for crypto to exist in the market, but not as an eFX settlement infrastructure.