Brazil's central bank may ban the use of crypto assets for settlement in regulated cross-border payment systems.

CoinFeed reported on May 1st that, according to Cointelegraph, the Central Bank of Brazil (Banco Central do Brasil, BCB) issued Resolution No. 561, prohibiting the use of virtual assets for settlement within the regulated international payment and transfer services (eFX) framework, further tightening the regulation of crypto assets in the cross-border payment sector. Under the new regulations, payments and receipts between eFX service providers and their overseas counterparties must be completed solely through foreign exchange transactions or fund transfers from non-resident Brazilian Real accounts, and settlement using crypto assets or stablecoins is prohibited. This restriction also applies to eFX service providers that have not yet been formally included in the approval category but are in the transition period; these institutions wishing to continue operating must apply for authorization from the Central Bank of Brazil by May 31, 2027.