Brazil mandates 24-hour holds on crypto transfers over $10,000

Brazil’s central bank announced that, from 1 January 2027, any cryptocurrency transfer above $10,000 to an overseas exchange or a self‑custody wallet will be paused for up to 24 hours pending review. The new rule also applies to any transfer flagged by the bank’s monitoring system, regardless of value. The pause is intended to give regulators time to verify the source of funds and to prevent illicit activity.

The move comes after a series of high‑profile crypto frauds and money‑laundering scandals that hit Brazil’s growing digital‑asset market. In 2023, a large‑scale Ponzi scheme that promised triple‑annual returns collapsed, draining more than $200 million from unsuspecting investors. Brazilian authorities have struggled to keep up with the rapid pace of crypto innovation, and the new holding period is part of a broader effort to tighten anti‑money‑laundering (AML) and know‑your‑customer (KYC) rules in the sector.

Under the new regulation, banks and crypto‑service providers must hold the transfer for a maximum of 24 hours, after which the transaction can be completed if the funds are verified. If the source of the funds cannot be confirmed, the bank must return the amount to the sender and report the transaction to the Financial Intelligence Unit. The rule will increase compliance costs for exchanges and may slow down the speed at which users move assets internationally, but it is expected to deter fraud and improve transparency.

The central bank will issue detailed guidance in the coming months, outlining the technical requirements for automated monitoring and the procedures for reporting suspicious activity. Industry groups have warned that the rule could push some smaller exchanges out of business, but they also argue that stronger safeguards could restore public trust and attract foreign investment. The next year will see how well the system balances security with the fast‑moving nature of Brazil’s crypto economy.