Brazil seeks 24-hour hold on $10,000 stablecoin transfers

The Banco Central do Brasil presented a draft rule on June 26, 2026, that would require virtual asset service providers to hold dollar stablecoin transfers of $10,000 or more for up to 24 hours before releasing them to foreign platforms or self-custody wallets. The central bank said the pause would allow time for anti-money laundering, fraud screening and other risk checks. The draft could take effect in October 2026 if adopted.

The hold would apply to transfers that leave Brazil’s regulated system to destinations the central bank cannot monitor after funds depart. The $10,000 threshold would be measured either as a single transaction or as the total amount moved by the same client in a single day. Under that rule, a client who sends multiple smaller transactions that add up to $10,000 in one day would trigger the hold on the transfer that exceeds the threshold. Providers may release funds sooner if their internal risk checks clear.

The draft is the third regulation in recent months that places dollar-denominated stablecoins under foreign exchange oversight. On April 30, 2026, Resolution No. 561 barred electronic foreign exchange providers from using stablecoins to settle overseas remittances effective Oct. 1, 2026. A June resolution then restricted the use of virtual assets as settlement rails for cross-border transactions. The central bank treats dollar stablecoins as foreign currency claims and applies foreign exchange monitoring to large flows.

Brazil is a major market for stablecoin payments in Latin America. Stablecoins account for roughly 90% of the country’s monthly crypto trading volume, which market estimates put at $6 billion to $8 billion. The draft rule is focused on large cross-border transfers and business-to-business flows; routine retail transfers below $10,000 would generally not be affected.

Regina Pedroso, executive director of ABToken, noted that the industry supports stronger financial controls but expressed concern about operational impacts on legitimate B2B payment flows. Industry associations submitted comments to the central bank by the July 2 deadline. Regulators are expected to publish a final rule before the October effective date if changes are adopted.

Market data show increased friction after earlier restrictions: the spread on stablecoin trades widened from about 0.1% to as much as 1% following prior measures. For institutional clients and B2B platforms, a mandatory 24-hour hold would move same-day settlement to next-day settlement for transfers above the threshold. The central bank cited international precedents, including mechanisms in Singapore and recent South Korean rules that limit transfers to self-custody wallets and overseas platforms.

The draft was shared with industry groups on June 26 and the comment period closed July 2. If approved, the rule would take effect in October 2026, giving virtual asset firms several months to adjust compliance systems.