The 24-hour hold period would allow virtual asset service providers to screen the transactions and verify the legitimacy of the funds moved. The funds could be released in a shorter timeframe, provided that the risks associated with the transaction are mitigated.
Key Takeaways:
Brazil proposed a 24-hour hold on stablecoins, hitting B2B markets, with comments due by July 2.The bank targeted $10,000+ stablecoin transfers, harming brokers, with final rules next up for review.New rules pause large crypto remittances, threatening institutional adoption, as feedback closes.The bank also acknowledged that the holding period would not be absolute and that funds could be released in a shorter timeframe if the intermediating VASP manages to address the risks of the specific transaction before.
“The retention is exclusively precautionary in nature and is intended for risk analysis of the respective operation, not implying the definitive unavailability of assets,” the bank stressed.
Nonetheless, the impact on retail users would be minimal due to the high limit proposed. But companies and services tailored to cater to institutions and business-to-business (B2B) use cases would be affected.
Associations and other interested parties will have until July 2 to submit commentary and their views on the implementation of this rule.
