Brazil to Tighten Crypto Fraud Controls With New 24-Hour Wait on Self-Custody Transfers

Starting Jan. 1, 2027, crypto service providers in Brazil must hold transfers to self-custody wallets and foreign firms for up to 24 hours. The central bank laid out the requirement in a new resolution targeting fraud.

Resolution 584, published Friday by the Banco Central do Brasil, kicks in when a single transaction or a customer’s combined daily transfers exceed $10,000. Smaller transfers are not automatically exempt. If a provider’s own risk controls raise a flag, the hold applies regardless of amount. The central bank called the measure “exclusively precautionary,” a window to assess fraud risk without freezing assets indefinitely. The practical upshot: a customer moving $10,000 or more to a private wallet or an offshore exchange waits a day before the transfer clears.

The scope covers traditional cryptocurrencies and fiat-backed stablecoins alike. Brazil had already brought fiat-pegged stablecoin trading and certain international crypto transfers under its foreign exchange rules in November 2025. Resolution 584 amends a 2021 framework, Resolution 142, which established fraud-prevention procedures for payment providers.

Crypto firms can release a held transfer before the 24 hours expire. The condition: a documented review covering the customer’s risk profile, the transaction, the counterparty, and the jurisdiction of the recipient. If the provider does not clear it, the transfer is rejected once the window closes. The central bank said it may impose stricter requirements on non-compliant firms, including longer holds, a lower threshold, or restrictions on early release.

The rule binds financial institutions, payment institutions, and other crypto service providers operating under Brazil’s regulatory transition period. That transition began in earnest in February 2026, when rules took effect requiring crypto firms to obtain central bank authorization and meet governance, security, and anti-money-laundering standards.

Brazil ranks fifth in Chainalysis’ 2025 Global Crypto Adoption Index. Between July 2024 and June 2025, the country received roughly $318.8 billion in crypto. That is nearly one-third of all crypto activity in Latin America during that period, according to Chainalysis data cited by The Block.

Providers must notify customers when a hold is imposed. The central bank said the notice should explain the precautionary nature of the hold and its expected duration. Under the amended framework, firms are also required to keep detailed daily records of crypto fraud and attempted fraud.

Brazil is not alone in tightening withdrawal controls. Cointelegraph notes that Japan’s Financial Services Agency and National Police Agency have asked exchanges to restrict withdrawals after fiat deposits, require pre-registered withdrawal addresses, and impose waiting periods for newly added addresses. Those measures, however, are not binding.

Whether the 24-hour window deters fraud or simply delays legitimate transfers will depend on how providers calibrate their risk reviews. The resolution takes effect Jan. 1, 2027.