Brazil Tightens Crypto Regulation in Cross-Border Payments

Brazil's central bank has taken a significant step towards regulating the use of cryptocurrencies in cross-border transactions. The new rule prohibits cryptocurrency settlement in regulated eFX payment rails, forcing banks and fintech firms to rely on fiat channels for international transfers.

The decision aims to strengthen monetary control and improve traceability of transfers under regulatory oversight. Authorities have cited concerns about compliance and the monetary control framework, particularly with regards to stablecoins.