Brazil Triggers 24-Hour Hold on $10K Crypto Transfers

Central Bank of Brazil Issues 24 Hour Retention Period For $10,000 Transactions

The Central Bank of Brazil has published a new resolution to curb the use of digital assets for illicit purposes, given their growing use for the rapid transfer of funds involved in financial fraud.

On Friday, the Central Bank of Brazil issued Resolution 584 of 2026, which amends Resolution 142 of 2021 to include fraud-prevention procedures applicable to institutions part of the Brazilian Payment System operating with digital assets.

Article 2-B explicitly states that these institutions “can only execute transfer orders for digital assets 24 hours after receiving funds” when these transfers are directed toward foreign VASPs or self-custody wallets.

Furthermore, the Resolution specifies that these retentions must be applied when the funds involved “exceed the value of US$10,000.00 or its equivalent in other currencies per transaction or the total value of transactions carried out on the same day on behalf of the customer.”

In a press release, the Central Bank of Brazil stressed that these retentions were precautionary in nature, allowing service providers to evaluate these transactions and apply their risk policies. These funds can be released before the 24-hour window if service providers determine that they pose no risks, and individuals must be informed of the status of their funds at all times.

Finally, the resolution also establishes that virtual asset service providers (VASPs) “must keep daily records detailing occurrences of fraud or attempted fraud in the provision of payment services and of services of virtual assets, including detailing the corrective measures adopted.”

The measures “strengthen the protection of financial services users and contribute to the safe development of the virtual asset market in Brazil,” the bank concluded.

The resolution, which becomes effective on January 1, 2027, follows a public consultation on the issue that closed on July 2 and prompted harsh criticism from national crypto organizations.

Abcrypto, one of the largest crypto associations in the country, which groups companies like Binance, Coinbase, Crypto.com, and Tether, argued that the retention would not affect illicit usage patterns, hurting legitimate institutions that use crypto as a rapid alternative to the legacy financial system instead.