Brazil to tighten crypto fraud controls with new 24-hour wait on transfers to self-custody wallets

Brazil's central bank, starting in the new year, will require crypto firms to wait 24 hours after customers fund their accounts to process transfers to self-custody wallets or offshore crypto firms, according to a resolution published Friday.Under the resolution, the requirement applies when a single transaction or the sum of a customer's daily transactions exceeds $10,000. Smaller transactions that are flagged by providers must also be held, although any held transaction can be released following a documented review by the crypto firm.Providers must consider the risk profile of the customer, the transaction or service, the counterparty to the transfer, and the jurisdiction where the recipient is based.The central bank described the hold as an exclusively precautionary measure designed to give providers time to assess fraud risk without permanently freezing customer assets. After 24 hours, the provider must either immediately release the transfer or reject it.Providers will also be required to notify customers when a hold is imposed, explaining its precautionary nature and duration. The rule covers both traditional cryptocurrencies and fiat-based stablecoins.Should a firm fail to comply, the central bank may also impose stricter requirements, including ordering the firm to apply holds longer than 24 hours, extending the procedure to transfers below $10,000, or restricting its ability to release transactions early.Rule expands existing fraud controls to cryptoThe measure, which will take effect on Jan. 1, 2027, applies to financial institutions, payment institutions, and other crypto service providers operating under the country's regulatory transition period.Resolution 584 amends a 2021 rule governing fraud-prevention procedures for payment providers. The amended framework requires firms to keep detailed daily records of crypto fraud and attempted fraud and document the anti-fraud measures they take.Brazil has spent the past year bringing crypto firms within the central bank's existing regulatory framework. Rules that took effect in February require crypto service providers to obtain authorization and meet governance, security, and anti-money laundering and terrorist financing standards.The earlier framework also put fiat-pegged stablecoin trading and certain international crypto transfers under Brazil's foreign exchange rules, The Block reported in November.Brazil ranked fifth in Chainalysis' 2025 Global Crypto Adoption Index. The country received about $318.8 billion in crypto between July 2024 and June 2025, nearly one-third of all crypto activity in Latin America during that period.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.