Brazil’s central bank has introduced a rule requiring covered crypto service providers to delay certain transfers for 24 hours as a precaution against fraud.

The Central Bank of Brazil (BCB) published Resolution 584 on Friday, amending existing fraud-prevention rules for payment services to also cover virtual asset services. The rules require qualifying transfers to be held while institutions conduct a risk assessment.

How Brazil’s 24-hour Hold Works

The requirement applies to transfers exceeding $10,000, whether in a single transaction or across the customer’s total transactions on the same day. It covers transfers to foreign entities that operate in the virtual asset market and to self-custody wallets.

The resolution describes the retention as an exclusively precautionary measure intended to allow institutions to assess transaction risk. It does not result in the permanent unavailability of assets, and institutions must notify affected customers of the hold and its 24-hour period.

After completing the risk assessment, institutions must either immediately release the transfer once the 24-hour period expires or reject the transaction. They may also release the funds before the deadline if they make and document a reasoned decision based on specified risk-management criteria.

The rules explicitly apply the retention requirement to virtual asset services covered by Brazilian law, including virtual assets referenced to fiat currencies, such as stablecoins.

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Additional Fraud Controls

The resolution also requires covered institutions to maintain daily records of fraud and attempted fraud involving payment and virtual asset services, including the corrective measures adopted.

The rules take effect on January 1, 2027. The BCB can require institutions to observe a period longer than 24 hours, extend the procedure to transactions below the $10,000 threshold, and restrict institutions’ ability to release transfers early when it identifies noncompliance with the resolution.

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Source: BeInCrypto