Brazil bans stablecoin and crypto settlement in cross-border payments

4 hours ago

Brazil's central bank bans eFX providers from using stablecoins and crypto for cross-border settlements starting October 1.
The rule targets fintechs and payment firms, requiring them to use forex transactions or non-resident accounts instead of crypto.
Individual crypto trading and holding remain legal under existing regulations; the ban only affects backend payment rails.
The regulation impacts companies like Nomad and Braza Bank, which previously used stablecoins for cross-border settlements.
Brazil's crypto market handles $6-8 billion monthly, with stablecoins making up about 90% of the volume.
Unauthorized eFX firms must apply for BCB approval by May 2027 and comply with client fund segregation and reporting rules.
The ban is part of a broader regulatory effort, including recent industry pushback against extending a financial transaction tax to stablecoins.

Hasty Briefsbeta