Brazil Restricts Stablecoin Use For Foreign Exchange Providers

Brazil limits stablecoins for eFX providers.

The Central Bank of Brazil has issued a regulatory update towards the use of crypto and stablecoins under the Electronic Foreign Exchange framework. This restricts the use of stablecoin settlement for eFX providers as a part of regulated international transfers with other parties.

Importantly, as outlined by the Central Bank of Brazil in its statement, eFX providers may also include banks, remittance providers, investment companies, brokerages, and other institutions in Brazil.

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This is expected to be enforced later in Q3 2026, however non eFX providers are still permitted to participate in crypto and stablecoin-related activities, such as buying and selling.

VASPs (Virtual Asset Service Providers) may not be impacted as much operating custody or broker services under a different BCB framework (although some overlap may exist).

Stablecoin adoption in Brazil has expanded over the last 12 months, with BRL (Brazilian Real) stablecoins passing $120M in market cap per Dune analytics.

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