Brazil mandates 24-hour hold on crypto transfers over $10,000

The Banco Central do Brasil has announced new regulations requiring virtual asset service providers (VASPs) to implement a mandatory hold of up to 24 hours on certain cryptocurrency transfers. Scheduled to take effect on January 1, 2027, the rule applies to transactions exceeding $10,000, whether as a single transfer or a cumulative total of a customer's daily transactions.

The measure specifically targets transfers destined for foreign crypto platforms or self-custody wallets. The central bank stated the goal is to curb financial fraud, noting that criminals increasingly use stablecoins to rapidly move illicit funds across borders. This is a precautionary measure rather than a permanent asset freeze; providers may release funds earlier if they complete a risk assessment that meets regulatory parameters.

In addition to the hold, providers must notify customers of any delays and maintain detailed records of fraud incidents and corrective actions. This move follows a broader trend of tightening digital asset oversight in Brazil, which includes a 2022 Virtual Assets Law and recent requirements for exchanges to register with the central bank. Data from Chainalysis suggests the move is timely, as illicit inflows to certain Brazilian exchanges were linked to significant criminal activities in 2025.