Brazil Implements 24-Hour Holds on Certain Crypto Transfers to Combat Fraud

Latest News | Published Aug 9, 2026

Brazil’s central bank is set to introduce new regulations requiring virtual asset service providers (VASPs) to implement precautionary holds of up to 24 hours on specific cryptocurrency transfers. These measures are designed to enhance fraud prevention efforts, particularly concerning transactions directed to foreign platforms or self-custody wallets. The new rules, which will take effect on January 1, 2027, will impact transactions exceeding $10,000 sent to overseas providers or self-custody wallets, as well as other transfers identified as requiring further review.

The Banco Central do Brasil (BCB) announced on Friday that the mandatory hold will apply to funds received by VASPs that are valued at over $10,000. This threshold can be met either through a single transaction or by aggregating a customer’s total transactions within a single day. Furthermore, VASPs will be obligated to place holds on any other transfers that necessitate additional scrutiny, in accordance with their established risk-management policies.

These new regulations are scheduled to be implemented on January 1, 2027. Upon the imposition of a hold, VASPs will be required to promptly notify their customers. They will also need to maintain comprehensive records detailing fraud incidents, any attempted fraudulent activities, and the corrective actions taken. The central bank has stipulated that a VASP has the discretion to complete its assessment and release a transfer before the 24-hour period expires, provided that all parameters set forth by the BCB have been meticulously followed.

This proactive measure by Brazil positions it among an increasing number of jurisdictions worldwide that are intensifying their regulatory safeguards for the cryptocurrency sector. These moves come as regulators grapple with the escalating problem of scams that exploit the inherent speed and cross-border capabilities of digital assets.

Brazil Joins Global Push Against Crypto Scams

Brazil’s regulatory initiative aligns with similar anti-scam measures that have been introduced in other countries. In Japan, for instance, the Financial Services Agency (FSA) and the National Police Agency have previously advised cryptocurrency exchanges to impose restrictions on withdrawals. These recommendations were made in response to incidents where customers deposited fiat currency or purchased digital assets, only to fall victim to scams.

The Japanese authorities also urged platforms to mandate the pre-registration of withdrawal addresses by their customers. Additionally, they called for the implementation of a waiting period before newly added withdrawal addresses could be utilized, aiming to provide a window for potential detection of fraudulent activity.

Other proposed safeguards in Japan include the establishment of customer-specific withdrawal limits, the enhancement of transaction monitoring systems, the adoption of phishing-resistant multi-factor authentication methods, and verification processes to ensure that the name of a bank remitter matches the name of the crypto account holder.

It is important to note that, in contrast to Brazil’s forthcoming regulations, the measures introduced in Japan are not legally binding. Consequently, Japanese crypto exchanges retain the flexibility to determine the specific implementation of these safeguards based on their operational frameworks and their assessed exposure to potential misuse.

This regulatory development in Brazil follows a previous decision where the central bank barred the use of virtual assets for settlement within its regulated cross-border payment service, eFX. This indicates a broader trend of caution regarding the integration of cryptocurrencies into traditional financial infrastructure within the country.

European Regulators Also Addressing Crypto Scams

Regulators in the European Union have also been vocal about the increasing prevalence of crypto-related scams. European watchdogs have issued warnings about criminals impersonating regulatory bodies and legitimate crypto companies. These fraudulent activities often target users who are actively searching for licensed service providers, particularly in the wake of the EU’s Markets in Crypto-Assets (MiCA) licensing deadline.

France’s financial regulator, for example, has reported instances of fraudulent websites designed to deceive investors. Similarly, the European Securities and Markets Authority (ESMA) has acknowledged reports of scammers misusing its identity and logo in falsified documents, aiming to lend an air of legitimacy to their illicit operations.

The increasing sophistication and pervasiveness of crypto scams underscore the critical need for robust regulatory frameworks and enhanced security measures within the digital asset ecosystem. Brazil’s move to implement mandatory holds on certain transfers represents a significant step in its commitment to protecting its citizens and maintaining the integrity of its financial markets in the face of evolving digital threats. The effectiveness of these measures will likely be closely monitored by other nations as they continue to develop their own approaches to regulating the burgeoning cryptocurrency industry. The evolving landscape of digital finance necessitates continuous adaptation and vigilance from both regulators and service providers to stay ahead of malicious actors.