Brazil’s central bank is introducing a new fraud-control requirement for parts of the crypto market, ordering virtual asset service providers to delay some transfers to foreign platforms and self-custody wallets for as long as 24 hours.
The Banco Central do Brasil said the precautionary hold is aimed at transactions considered higher risk. The rule is scheduled to take effect on Jan. 1, 2027, and will apply in cases that cross a value threshold as well as to other transfers that providers identify for additional review under their internal controls.
What the new rule covers
According to the central bank, the hold requirement applies to funds received above $10,000, whether that amount is reached in a single transaction or through a customer’s total transactions over the course of one day. The measure is focused on transfers involving foreign platforms or self-custody wallets.
The same obligation will also extend to other transactions that a virtual asset service provider decides require closer examination under its own risk-management policies. That means the threshold is not the only trigger: firms must also pause transfers when their monitoring systems or procedures identify a need for further scrutiny.
Operational duties for providers
The central bank said providers must inform customers when a transfer has been placed on hold. They will also be required to maintain records covering fraud incidents, attempted fraud and the corrective actions taken in response.
The delay does not automatically have to last a full day. A provider may finish its review and release the transfer before 24 hours have passed, as long as it follows the parameters established by the central bank.
Why regulators are acting
The new measure reflects broader concern among authorities about scams that make use of the speed of crypto transfers and the ease of moving funds across borders. By forcing a pause on selected transactions, regulators appear to be trying to create time for checks before funds leave the reach of domestic platforms.
Brazil’s announcement places it among a growing number of jurisdictions that are tightening safeguards around digital-asset transfers, particularly where fraud risks are seen as elevated.
How Brazil’s approach compares internationally
The central bank’s move comes after anti-scam steps in other markets, including Japan. There, the Financial Services Agency and the National Police Agency asked crypto exchanges to limit withdrawals after customers deposit fiat currency or purchase digital assets.
Japanese authorities also called on platforms to require customers to preregister withdrawal addresses and to impose a waiting period before newly added addresses can be used. Other proposed safeguards include withdrawal limits tailored to the customer, stronger monitoring, phishing-resistant multifactor authentication and checks to confirm that the name of the bank remitter matches the crypto account holder.
Unlike Brazil’s measure, the Japanese steps described in the source article are not binding. Exchanges in Japan can decide how to implement them based on their own operations and perceived exposure to abuse. For Brazil, the next confirmed milestone is the Jan. 1, 2027 start date for the new hold requirement.
Source: cointelegraph.com