The new controls include a precautionary 24-hour retention of funds exceeding $10,000 for an individual or aggregate transactions per day, to allow VASPs to conduct a risk analysis of these movements. The bank stressed that these measures are preventive in nature.
Key Takeaways
Brazil requires a 24-hour hold on crypto transfers over $10K sent to foreign VASPs or self-custody.This delay aims to curb financial fraud by giving platforms time to evaluate risk and apply safety rules.Crypto associations criticized the rule, warning it hurts legitimate users relying on rapid transfers.The Central Bank of Brazil has published a new resolution to curb the use of digital assets for illicit purposes, given their growing use for the rapid transfer of funds involved in financial fraud.
Article 2-B explicitly states that these institutions “can only execute transfer orders for digital assets 24 hours after receiving funds” when these transfers are directed toward foreign VASPs or self-custody wallets.
Furthermore, the Resolution specifies that these retentions must be applied when the funds involved “exceed the value of US$10,000.00 or its equivalent in other currencies per transaction or the total value of transactions carried out on the same day on behalf of the customer.”
Finally, the resolution also establishes that virtual asset service providers (VASPs) “must keep daily records detailing occurrences of fraud or attempted fraud in the provision of payment services and of services of virtual assets, including detailing the corrective measures adopted.”
The measures “strengthen the protection of financial services users and contribute to the safe development of the virtual asset market in Brazil,” the bank concluded.
