Brazil Bars Stablecoins from Bulk eFX Settlement Starting Oct. 1

Brazil’s central bank issued Resolution 561, which will take effect on 1 October 2024. The rule bars virtual assets, including stablecoins, from being used to settle the bulk‑settlement leg between regulated foreign‑exchange (eFX) providers and their overseas counterparties. The settlement must instead be carried out through a licensed FX transaction or a qualifying non‑resident real account.

What the rule changes

• eFX providers can continue to net and consolidate multiple payments before settlement.
• The specific method of settling the aggregated leg with stablecoins or other virtual assets is prohibited.
• Individual international transfers using stablecoins remain permitted under existing regulations.

Why the change matters

The 2022 Brazilian virtual‑assets law gave the central bank authority to define which crypto activities count as foreign‑exchange operations, but detailed rules were lacking. Some market participants used the bulk‑settlement shortcut to keep stablecoin flows outside the formal FX system, reducing costs such as Brazil’s financial transaction tax and correspondent‑bank fees.

Resolution 561 closes that ambiguity, giving regulators clearer visibility into high‑volume, low‑value flows such as streaming subscriptions, online gaming payments and e‑commerce transactions.

Impact on costs and users

Providers will now have to route the aggregated settlement through licensed FX channels, potentially re‑introducing the transaction tax and banking fees that stablecoin settlement previously avoided. Analysts expect these added costs to be passed on to Brazilian consumers and businesses.

Stablecoin activity in Brazil

• Declared stablecoin transactions from August 2019 to December 2025 totalled R$1.13 trillion, about 72 % of all declared crypto activity.
• In 2025, stablecoins represented close to 80 % of declared crypto volume, with USDT accounting for roughly 89 % of stablecoin transactions.

Industry response

Broker‑age firms plan to keep stablecoins for internal treasury management, liquidity movement and settlement, but will route the restricted settlement leg through licensed intermediaries. The architecture is expected to remain hybrid, with wallets and treasury controls retained where permitted and regulated FX channels used for the barred leg.

Outlook

The rule reduces regulatory uncertainty for larger firms that can partner with licensed institutions, while smaller payment providers may face higher compliance costs. The overall efficiency advantage of stablecoins for Brazil‑linked cross‑border flows will depend on how much of the added FX and banking cost can be absorbed.