Brazil’s central bank has put forward a proposal that introduces a mandatory review period for certain high-value transactions, giving crypto service providers additional time to perform compliance checks before funds are released.
Under the proposal, transfers made with stablecoins that exceed $10,000 would be subject to a holding period of up to 24 hours. During that time, virtual asset service providers (VASPs) would assess the transaction for potential risks, confirm that it aligns with the customer’s financial profile, and complete other required due diligence procedures.
The central bank noted that the delay is intended purely as a precautionary measure rather than a restriction on customer assets. If a provider finishes its review before the 24-hour period expires and finds no concerns, the funds could be made available sooner.
According to the regulator, the temporary retention serves only to support risk evaluation and should not be interpreted as permanently blocking access to digital assets.
Should the proposal become law, it could reduce the appeal of domestic crypto exchanges for international transfers. Stablecoins have gained popularity since they often enable faster payments than traditional banking systems, making them an attractive option for users seeking quicker settlement times.
The practical effect on everyday users is expected to be limited because the proposed threshold only applies to transactions valued above $10,000. However, businesses that rely on stablecoins for cross-border settlements, particularly firms providing services to institutions or business-to-business clients, could experience a greater impact.
The proposal comes as institutional adoption of stablecoins continues to grow across Latin America. A recent report from the Digital Chamber, a crypto advocacy organization based in the U.S., found that 71% of financial institutions in the region already use stablecoins for international payments. That figure represents the highest adoption rate among all global regions.
Industry groups, trade associations, and other interested stakeholders have until July 2 to submit comments on the proposed framework before regulators consider the next steps.
Elsewhere in the region, a court in Paraguay sentenced two people to two years in prison after finding them guilty of stealing electricity to power Bitcoin mining operations. Although the prison terms were handed down, the court suspended their execution.
In Venezuela, Binance Charity announced a $3 million aid initiative using USDT vouchers for residents affected by recent earthquakes. Eligible recipients in several impacted provinces must verify their identity and residency before receiving digital vouchers worth 20 USDT, which can be redeemed through the company’s rewards platform.
The proposed regulatory change in Brazil is likely to attract the attention of crypto industry players like MicroStrategy Inc. (NASDAQ: MSTR) since it could provide a model that other jurisdictions adopt in their bid to limit the illicit use of stablecoins and other digital currencies by wrong elements.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
Austin, Texas
www.CryptoCurrencyWire.com
512.354.7000 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
