- Brazil‘s central bank will require virtual asset service providers to place holds of up to 24 hours on transfers above $10,000 to foreign platforms or self-custody wallets.
- The rules take effect on Jan. 1, 2027, and aim to prevent fraud by giving providers time to assess suspicious transactions.
- Brazil joins other jurisdictions like Japan and European regulators in tightening crypto safeguards, though Japan’s measures remain non-binding.
Brazil’s central bank Banco Central do Brasil (BCB) said Friday that virtual asset service providers must place precautionary holds of up to 24 hours on certain transfers to foreign platforms or self-custody wallets. The requirement applies to funds received above $10,000, either in a single transaction or across a customer’s total daily transactions.
Providers must also hold other transfers flagged for further scrutiny under their risk-management policies. The rules take effect on Jan. 1, 2027.
Providers must notify customers of holds and maintain records of fraud incidents, attempted fraud, and corrective actions. A VASP may complete its assessment and release a transfer before the 24-hour period expires, provided it follows parameters set by the central bank.
Consequently, Brazil joins a growing list of jurisdictions tightening crypto safeguards. Regulators worldwide are confronting scams that exploit the speed and cross-border reach of digital assets.
In Japan, the Financial Services Agency and National Police Agency asked crypto exchanges to restrict withdrawals after customers deposit fiat currency or buy digital assets. Authorities also called for platforms to require preregistration of withdrawal addresses and impose waiting periods before newly added addresses can be used.
Unlike Brazil’s regulation, the Japanese measures are not binding. Exchanges can determine implementation based on their operations and exposure to misuse.
Meanwhile, European regulators have warned of criminals impersonating watchdogs and crypto companies. France’s financial regulator reported cases involving fake websites, while the European Securities and Markets Authority said scammers misused its identity and logo in falsified documents.
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