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

The Central Bank of Brazil has published Resolution 584 of 2026, which amends Resolution 142 of 2021 to include fraud-prevention procedures for institutions operating with digital assets. The new rule requires virtual asset service providers (VASPs) to retain funds exceeding $10,000 per transaction or daily aggregate for 24 hours before executing transfers directed toward foreign VASPs or self-custody wallets.

This precautionary retention allows VASPs to conduct risk analysis and apply their safety policies. Funds may be released earlier if no risk is found, and customers must be informed of their status at all times. VASPs must also maintain daily records of fraud or attempted fraud, including corrective measures.

The central bank stated the measures aim to curb the use of digital assets for financial fraud, given their growing use for rapid fund transfers. The resolution becomes effective on January 1, 2027, following a public consultation that drew harsh criticism from national crypto organizations.

Abcrypto, a major Brazilian crypto association representing companies like Binance, Coinbase, and Tether, argued the retention would not effectively target illicit usage patterns but instead harm legitimate users who rely on crypto for rapid transfers as an alternative to traditional systems.

The regulation comes amid broader debate in Brazil over stablecoin regulation, with Congress considering Bill 4308/2024 and industry opposition to designating stablecoins as electronic money.

Source: https://news.bitcoin.com/regulation-and-legal/brazil-triggers-24-hour-hold-on-10k-crypto-transfers/