Brazil crypto fraud control regulatory expansion

Brazil central bank imposes 24-hour delay on large crypto transfers

Brazil's Central Bank previously established fraud-prevention rules for payment services, which this resolution now extends to virtual asset services.

Brazil's central bank had already put in place fraud-prevention rules for payment services. The exact date of those rules is not specified in the materials reviewed, but they are described as "existing" when Resolution 584 was published, with the timeline pointing to roughly early 2020.

Resolution 584, issued on a Friday, amended those payment-service rules to also cover virtual asset services. The extension applies to stablecoins and transfers to foreign entities operating in the virtual asset market as well as to self-custody wallets.

Under the amended framework, covered institutions must hold certain transfers for 24 hours as an exclusively precautionary measure, keep daily records of fraud and attempted fraud, and may face longer holds or lower thresholds if the central bank finds noncompliance.