Brazil Central Bank Bans Cryptocurrency Usage in Regulated Cross-Border Payments

The Central Bank of Brazil has taken a significant step towards regulating cryptocurrency usage by prohibiting its use in regulated cross-border payment systems.

Resolution 561, adopted on May 1, 2026, limits the use of cryptocurrencies for international payments in all regulated systems. This move does not entirely prohibit digital assets in the country but instead excludes them from cross-border regulated infrastructure.

The ban applies to electronic foreign exchange services and prohibits their use of virtual currencies in transactions. Instead, transactions must occur via traditional foreign exchange rates or non-resident accounts in Brazilian reals.

The regulation aims to return these flows to the National Financial System (SFN), subjecting them to oversight, taxes, and reporting similar to traditional fiat currency.