No More Instant Crypto Transfers in Brazil? Central Bank Introduces New Law

Brazil's central bank has introduced a rule requiring covered crypto service providers to delay certain transfers for 24 hours as a precaution against fraud.

The Central Bank of Brazil (BCB) published Resolution 584 on Friday, amending existing fraud-prevention rules for payment services to also cover virtual asset services. The rules require qualifying transfers to be held while institutions conduct a risk assessment.

How Brazil's 24-hour Hold Works

The requirement applies to transfers exceeding $10,000, whether in a single transaction or across the customer's total transactions on the same day. It covers transfers to foreign entities that operate in the virtual asset market and to self-custody wallets.

The resolution describes the retention as an exclusively precautionary measure intended to allow institutions to assess transaction risk. It does not result in the permanent unavailability of assets, and institutions must notify affected customers of the hold and its 24-hour period.

After completing the risk assessment, institutions must either immediately release the transfer once the 24-hour period expires or reject the transaction. They may also release the funds before the deadline if they make and document a reasoned decision based on specified risk-management criteria.

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