Brazil to Require 24-Hour Hold on Crypto Withdrawals Above $10,000

Brazil's central bank will require a 24-hour hold on certain cryptocurrency withdrawals above $10,000 as part of efforts to combat money laundering and financial fraud.

The Block reported on August 9 that the Banco Central do Brasil has issued a rule requiring virtual-asset service providers to delay withdrawals for 24 hours in certain cases when users move assets, after depositing funds into their accounts, to self-custody wallets or overseas crypto platforms.

The rule applies when a single transaction or cumulative daily transfers exceed $10,000. Providers may also impose the same delay on transactions below $10,000 if they judge there is a fraud risk.

Crypto firms must assess a user's risk profile, transaction characteristics, the counterparty and the recipient's country of residence, among other factors. The central bank said the measure is a preventive step to check for fraud, not an attempt to freeze assets.

After 24 hours, providers must immediately approve or reject the transaction. If they place a hold on a transfer, they must tell users the reason and the length of the delay. The rule applies not only to cryptocurrencies such as Bitcoin but also to fiat-backed stablecoins.

The measure will take effect on January 1, 2027. Providers that fail to comply could face additional restrictions, including holds longer than 24 hours, an expansion of the rule to transactions below $10,000 and limits on early approvals.

Brazil has been working since last year to bring crypto firms into the existing financial regulatory framework. Since February, it has required virtual-asset service providers to obtain authorization and meet governance, security and anti-money laundering requirements.