Brazil's Central Bank Mandates 24-Hour Hold on Large Crypto Transfers

Brazil’s Central Bank (BCB) has introduced a significant regulatory measure aimed at enhancing fraud prevention in the cryptocurrency sector. Under Resolution 584, effective January 1, 2027, covered crypto service providers are mandated to delay transfers exceeding $10,000 for a period of 24 hours.

This precautionary measure is designed to allow institutions sufficient time to conduct risk assessments on the transactions. The rule applies to both single transactions and the cumulative total of a customer’s transactions on any given day. It encompasses transfers to foreign entities operating in the virtual asset market and self-custody wallets.

Upon completion of the risk assessment, institutions are required to either release the transfer after the 24-hour hold or reject it. They may also expedite the release of funds if a reasoned decision based on specific risk-management criteria is documented.

Additionally, the resolution mandates that institutions maintain daily records of fraud and attempted fraud related to both payment and virtual asset services, including any corrective measures taken. The BCB retains the authority to extend the hold period beyond 24 hours or to apply the retention requirement to transactions below the $10,000 threshold if noncompliance is identified.