Brazil Imposes Ban on Cryptocurrency Cross-Border Payments

Brazil has become the latest country to take a cautious approach towards cryptocurrencies, implementing a ban on their use for cross-border payments. Resolution No. 561, issued by the Central Bank of Brazil, prohibits the use of cryptocurrencies like Bitcoin and stablecoins for payment settlements across borders.

The regulation targets regulated electronic foreign exchange (eFX) passages used by fintech and banking platforms. While individual trading and unregulated transactions will not be impacted, financial entities must rely on conventional foreign exchange mechanisms or non-resident real accounts for international payments.