Brazil Adds Crypto Transfer Holds for Fraud Prevention

The rules, effective Jan. 1, 2027, cover transactions above $10,000 sent to overseas providers or self-custody wallets, along with other transfers flagged for review.

Brazil’s central bank will require virtual asset service providers (VASPs) to place precautionary holds of up to 24 hours on certain transfers to foreign platforms or self-custody wallets as part of new measures aimed at preventing fraud. 

On Friday, the Banco Central do Brasil (BCB) said the requirement will apply to funds received above $10,000, either in a single transaction or based on a customer’s total transactions in a day. Providers must also hold other transfers requiring further scrutiny under their risk-management policies. 

The rules take effect on Jan. 1, 2027. Providers must notify customers of holds and keep records of fraud incidents, attempted fraud and corrective actions. A VASP may complete its assessment and release a transfer before the 24 hours expire, provided that it follows parameters set out by the central bank. 

The measure adds Brazil to a growing list of jurisdictions tightening crypto safeguards as regulators confront scams that exploit the speed and cross-border reach of digital assets. 

Brazil joins global push against crypto scams

Brazil’s move follows anti-scam measures introduced in other jurisdictions. 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. 

The authorities also called for platforms to require customers to preregister withdrawal addresses and impose a waiting period before newly added addresses can be used. 

Other proposed safeguards include customer-specific withdrawal limits, stronger monitoring, phishing-resistant multifactor authentication and checks that the name of a bank remitter matches the crypto account holder. 

Unlike Brazil’s regulation, the Japanese measures are not binding. In addition, exchanges can determine implementation based on their operations and exposure to misuse. 

Related: Brazil bars crypto settlement in regulated cross-border payment rails

European regulators have warned of criminals impersonating watchdogs and crypto companies as users search for licensed service providers after the EU’s Markets in Crypto-Assets licensing deadline. 

France’s financial regulator reported cases involving fake websites, while the European Securities and Markets Authority said scammers had misused its identity and logo in falsified documents. 

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