Banco Central do Brasil (BCB), Brazil's central bank, will require crypto-asset service providers to delay certain transfers by up to 24 hours under new anti-fraud regulations aimed at curbing the rapid movement of funds tied to scams.

The rules are scheduled to take effect on January 1, 2027. They apply to transfers exceeding $10,000 destined for overseas virtual-asset service providers or self-custody wallets. The $10,000 threshold may also be triggered by a customer's aggregate transfers over the course of a single day. Additional transactions may be placed under review at the discretion of each provider's own risk-management procedures.

Notably, the delay requirement applies not only to virtual assets but also to Reais, Brazil's national currency. This effectively extends the rules across the entire virtual-asset value chain, covering both fiat and crypto legs of a transaction. The breadth of the requirement means that the hold could apply before funds even reach a blockchain, at the point a customer initiates a Reais transfer to fund a crypto purchase destined abroad.

Under the new framework, crypto platforms will be obligated to notify customers whenever a transfer is placed on hold. Providers must also maintain detailed records of fraud attempts, incidents, and corrective measures taken.

The BCB has stated that providers may release a transaction before the 24-hour period lapses if their internal risk assessment satisfies parameters established by the central bank.

The measure reflects increasing concern among regulators worldwide that the speed and cross-border nature of cryptocurrencies, particularly stablecoins, can be exploited to move illicitly obtained funds before banks, exchanges, or law enforcement agencies have the opportunity to intervene. Unlike traditional bank transfers, which can in some cases be reversed or frozen through court order after the fact, most blockchain transactions are irreversible by design, making pre-transaction intervention a more effective enforcement strategy.

Brazil has been steadily building out its crypto regulatory framework in recent years. In December 2022, the country enacted a landmark law (Law No. 14,478/2022) establishing a legal foundation for virtual-asset service providers and designating the BCB as the primary supervisory authority for the sector pending formal licensing procedures. The new transfer-delay rules represent one of the most operationally specific measures to emerge from that framework, as the BCB continues to develop detailed supervisory expectations ahead of formal licensing.

The BCB's approach mirrors similar measures being explored in other jurisdictions. Japan's Financial Services Agency (FSA) has also asked domestic crypto exchanges to delay withdrawals in an effort to combat investment scams. Both moves align with broader international efforts, including the Financial Action Task Force's (FATF) Travel Rule, which requires virtual-asset service providers to collect and share originator and beneficiary information for qualifying transfers — a framework that many countries are still working to implement for cross-border crypto transactions.