Brazil Tightens Oversight of Cross-Border Payments with Crypto Ban

The Banco Central do Brasil has introduced stricter regulations on the use of cryptocurrencies in cross-border payment services. According to a resolution published on April 30, virtual assets including bitcoin and stablecoins can no longer be used to settle transactions within the country's Electronic Foreign Exchange (eFX) system.

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. This effectively excludes 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. However, financial institutions and remittance firms must rely on conventional currency rails when processing international transfers.