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Brazil’s Central Bank Tightens Grip on Crypto, Prohibiting Cross-Border Transfers

Brazil’s central bank has taken a significant step in regulating cryptocurrency by issuing Resolution BCB No. 561.

This new regulation bans the use of crypto assets for cross-border transfers as part of an update to the framework for international payment services, known as eFX.

From now on, all international payments must be conducted exclusively through foreign exchange operations or regulated accounts.

This move reflects Brazil's commitment to enhancing regulatory control over financial transactions involving cryptocurrencies.

The ban impacts both businesses and individual users who have been relying on digital currencies for international transactions.

In addition to the crypto prohibition, the new rules enforce stricter Know Your Customer (KYC) policies and reporting requirements.

These regulatory changes are set to come into effect on October 1, 2026, allowing stakeholders time to adjust.

The central bank aims to foster a more secure financial environment while managing risks associated with cryptocurrency.

As the global landscape for digital assets evolves, Brazil's decision may influence other countries' approaches to crypto regulation.

Ultimately, the move showcases a growing tension between traditional financial systems and the emergence of digital currencies.