Brazil Removes Stablecoins from eFX: What Changes on October 1

Brazil did not ban stablecoins. It banned using them as a shortcut. Starting October 1, anyone settling international payments in USDT or USDC must do so with licenses, traceability, and limits—or stop doing it.

This Thursday, October 1, Banco Central do Brasil Resolution 561 takes effect. Published on April 30, the rule prevents eFX providers from using stablecoins, bitcoin, or other cryptoassets to settle the international leg of a payment. eFX is Brazil’s framework for low-value, high-volume digital international payments, including cross-border e-commerce, subscriptions, remittances, and global accounts. In practical terms, a remittance company will no longer be allowed to accept reais from a customer, convert them to USDT, and settle the other side of the transaction on a blockchain.

Headlines described the measure as a “stablecoin ban.” That is misleading, and the distinction matters greatly for fintechs and payments companies operating in Latin America. Brazil is not closing the door to stablecoins. It is deciding which door they must use.

What Resolution 561 Actually Prohibits

The rule amends BCB Resolution 277, which created the eFX framework. Beginning in October, settlement between an eFX provider and its foreign counterparty can take place only through two channels: a traditional foreign-exchange transaction or a nonresident account denominated in reais.

What does not change:

Individuals and companies may continue buying, selling, holding, and transferring stablecoins through authorized providers.

Licensed Virtual Asset Service Provider Companies, known in Brazil as SPSAVs, may continue making international payments with stablecoins under BCB Resolution 521.

Two additional dates belong on every provider’s calendar. Already authorized institutions must update their registration by October 30, 2026. Firms operating eFX without authorization have until May 31, 2027 to apply for a license or leave the market.

Why the Central Bank Acted

There are two reasons: volume and control.

The volume is enormous. Between August 2019 and December 2025, Brazil reported BRL 1.58 trillion in crypto transactions. Stablecoins accounted for BRL 1.13 trillion, or 71%, and USDT represented 88.7% of that segment. Brazil’s crypto market moves an estimated $6 billion to $8 billion per month, with stablecoins accounting for close to 90% of the total. For a central bank, this is no longer a niche. It is a parallel foreign-exchange market.

Control is the second reason. eFX was designed for small payments, but the Brazilian Senate’s Betting Parliamentary Inquiry documented fraud involving false CPF taxpayer numbers in eFX remittances. Banco Central had already announced structural changes to the model in June 2024. Blockchain settlement outside the foreign-exchange system’s line of sight was precisely the blind spot the regulator wanted to close.

The Other Half of the Story: Resolution 521

Resolution 561 cannot be understood without Resolution 521, which has been in force since February 2, 2026. That rule treats cross-border virtual-asset transactions as foreign-exchange operations and subjects them to the same rules as the currency market. Reporting obligations began on May 4.

The most important operational detail for payments companies is this: an international payment or transfer involving virtual assets is capped at $100,000 when the counterparty is not an institution authorized to operate in the foreign-exchange market. Transfers to self-custody wallets—wallets controlled directly by users without an intermediary—also require identifying the owner and verifying the origin and destination of funds.

Together, the two resolutions create a clear map:

eFX providers under Resolutions 277 and 561 cannot settle in stablecoins after October 1, 2026. They must use traditional FX or nonresident real accounts.

Authorized SPSAVs under Resolution 521 may use stablecoins. The transaction is treated as foreign exchange, with reporting and traceability requirements and a $100,000 cap when the counterparty is not authorized.

End users operating through an authorized platform may still buy, sell, hold, and transfer stablecoins. Transfers to self-custody wallets require identification.

What It Means for Your Company

If you operate in Brazil as an eFX provider and settle in USDT or USDC, your model changes this week. You have two options: return to traditional FX or nonresident real accounts, or separate the crypto business into a licensed SPSAV. Companies such as Nomad and Braza Bank, which have integrated stablecoin settlement, fall into this category.

If you are the foreign partner of a Brazilian provider, review your contracts. Your counterparty will no longer be able to pay you in stablecoins through eFX. That changes settlement timing, costs, and your treasury’s liquidity needs.

If you issue or distribute stablecoins, your potential customer in Brazil is no longer “any fintech.” It is an authorized SPSAV or a bank licensed for foreign exchange. Distribution in Brazil now runs through regulated institutions.

If you operate in Mexico, read this as a preview. Brazil has separated stablecoin payments from its simplified FX framework and moved them into a licensed channel with reporting and limits. Other regulators in the region may follow a similar logic: traceability first, permission second. Building reconciliation, counterparty KYC, and reporting as though they were already mandatory is cheaper than rebuilding the flow later.

A Lane, Not a Wall

Reading Resolution 561 as an attack on stablecoins misses the larger picture. Brazil is one of Latin America’s largest stablecoin markets, alongside Mexico and Argentina, and its central bank is not trying to stop that activity. It is forcing the volume through a channel it can see, measure, and supervise.

The industry’s message is uncomfortable but useful: regulatory arbitrage in stablecoin-based cross-border payments is ending. Competitive advantage will increasingly belong to companies with the right licenses, banking partnerships, and compliance infrastructure.

Businesses whose proposition was “we settle in USDT and bypass foreign exchange” now face a problem. Those built around genuine efficiency—24/7 settlement, fewer intermediaries, and better liquidity management—inside the regulatory framework will face less informal competition starting this Thursday.

Published by Stablecoins Americas · September 28, 2026