The Central Bank of Brazil (BCB) has completely banned the use of virtual assets for international payment settlements, tightening control over cryptocurrency fund flows. According to a resolution announced last Thursday, regulated electronic foreign exchange (eFX) providers must exclusively use foreign exchange transactions or non-resident BRL accounts for overseas transactions, and the use of virtual assets is prohibited. This measure is not intended to ban cryptocurrencies entirely, but rather to enhance the efficiency of foreign exchange supervision by blocking the inflow of stablecoins, etc., within the regulated institutional payment network. Brazilian authorities have determined that 90% of cross-border remittances are linked to stablecoins, which increases the risk of tax evasion and money laundering. In particular, they view externally issued stablecoins not subject to the central bank's supervision as potentially infringing on monetary sovereignty and have announced future market expulsion or strict restrictions.
