Central Bank imposes 24-hour hold on cryptocurrency transfers

The Central Bank of Brazil published on Friday (7) Resolution BCB No. 584, which expands fraud prevention rules to also cover the provision of virtual asset services in the country.

The regulation amends Resolution BCB No. 142 from 2021, which previously dealt with procedures and controls for fraud prevention in payment services. With this change, the rules now also encompass companies providing services related to cryptocurrencies.

Among the main updates is the creation of a precautionary hold of up to 24 hours for certain virtual asset transfers.

According to the resolution, institutions providing virtual asset services or executing payment transactions related to these services may only execute certain transfer orders 24 hours after receiving the funds used in the contribution.

The rule applies when the transfer's destination is an entity established abroad that operates in the virtual asset market or a self-custodied wallet.

However, the hold will not be applied indiscriminately to all operations.

The resolution establishes that the hold must be applied to operations exceeding the equivalent of $10,000 per operation or the total value of operations conducted on the same day on behalf of the client.

Operations below this limit may also be held when the institution's risk management policies identify the need for additional analysis.

For this, companies must consider, among other factors, the client's risk profile, the characteristics of the operation or service, the counterparty involved, and the jurisdiction where the entity is based.

The measure has an exclusively precautionary nature, according to the Central Bank's text, and does not represent a definitive unavailability of the assets.

When an operation is held, the institution must inform the client and clearly state that the measure is precautionary, as well as indicate the applicable timeframe.

After the risk analysis, the institution must, at the end of the 24 hours, make a decision regarding the operation.

The company may lift the hold and allow the transfer or reject the operation.

The resolution also allows the institution to release a transfer before the 24-hour period, provided there is a reasoned decision based on risk management criteria.

In this case, the company must document the decision, its rationale, and the criteria used to release the operation early.

The new rule makes it clear that the hold also applies to virtual asset services provided for in Law No. 14,478/2022, including virtual assets referenced in fiat currency, known as stablecoins.

In practice, therefore, the rule is not limited to cryptocurrencies like Bitcoin and Ethereum, but also covers operations involving stablecoins.

The resolution further determines that the new rules will apply to companies providing virtual asset services that are in the process of complying with the Central Bank's regulations.

The measure expands the scope of anti-fraud regulations for the virtual asset market as the process of regulating companies in the sector progresses.

In addition to the hold on transfers, the resolution requires institutions to maintain daily records detailing occurrences of fraud or attempted fraud related to both payment services and virtual asset services.

The records must also include the corrective measures adopted.

Another relevant point is that the Central Bank may adopt additional measures if it identifies non-compliance with the resolution.

The authority may determine, for a specific institution or for a group of institutions, the adoption of a period longer than the 24 hours provided for in the regulation.

The Central Bank may also determine that the hold procedure be applied to operations below the $10,000 limit and restrict the possibility for institutions to release operations before the end of the period.

The resolution also provides that the Central Bank may later define the frequency, minimum content, and procedures for sending documentation related to holds and early releases.

Resolution BCB No. 584 was approved by the Collegiate Board of the Central Bank in a session held on August 6, 2026, and published on August 7.

The new regulation comes into effect on January 1, 2027.

The measure represents another step in the expansion of the Brazilian regulatory framework regarding companies providing services related to virtual assets, incorporating the sector into the fraud prevention and control structures already applied to the financial and payment systems.

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