Brazil Central Bank Bans Crypto Use in Cross-Border eFX Transfers

Uk Jin

Summary

Brazil’s central bank said it will restrict the use of virtual assets (cryptocurrencies) in the Electronic Foreign Exchange (eFX) system for cross-border payments and remittances.
Under Resolution No. 561, receipts through eFX can be made only through foreign-exchange transactions or Brazilian real accounts for non-residents.
The outlet said the amendment is intended to keep cross-border fund flows within a supervisable foreign-exchange system.

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Brazil’s central bank, Banco Central do Brasil, has barred the use of virtual assets, including cryptocurrencies, in the Electronic Foreign Exchange system, or eFX, used for cross-border payments and remittances.

Cointelegraph reported on May 1 that the central bank published Resolution No. 561 on April 30, revising regulations related to eFX.

The resolution states that all receipts in eFX, which is regulated by Brazilian authorities, must be made only through foreign-exchange transactions or Brazilian real accounts for non-residents. The use of virtual assets is prohibited.

According to the outlet, the amendment is intended to keep cross-border fund flows within a foreign-exchange system that regulators can supervise by blocking payment channels that use crypto.