Brazil Tightens Crypto Regulation on Cross-Border Payments

Brazil has strengthened its stance on cryptocurrency regulation, restricting the use of virtual assets in certain cross-border payment services.

The Banco Central do Brasil issued Resolution No. 561 on Thursday, updating existing eFX regulations to require standard foreign exchange transactions for payments between local providers and foreign partners.

The new rule prohibits the use of stablecoins and cryptocurrencies in both outgoing and incoming payments under the eFX framework, aiming to keep international transfers within monitored systems.