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Brazil to require up to 24-hour holds on some crypto transfers

The Banco Central do Brasil said the rules will apply to virtual asset service provider transfers involving more than $10,000, effective Jan. 1, 2027.

Reported · Written up by our desk · Regulation

Brazil’s central bank said it will require virtual asset service providers to place precautionary holds of up to 24 hours on certain crypto transfers to overseas platforms or self-custody wallets, as part of new anti fraud measures.

The requirement will apply to funds received above $10,000, either in a single transaction or based on a customer’s total transactions during a day. Providers must also hold other transfers that require additional scrutiny under their risk management policies.

The rules take effect Jan. 1, 2027. Providers must notify customers of holds and keep records of fraud incidents, attempted fraud, and corrective actions.

Under the framework, a VASP may complete its assessment and release a transfer before the 24 hours expire if it follows parameters set by the central bank. Cointelegraph also noted similar steps being pursued in Japan, including calls for exchanges to restrict withdrawals after certain customer actions and to add safeguards around withdrawal address preregistration and waiting periods.

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