Brazil Extends Stablecoin Oversight with Payments, Trade Rules

The moves follow the implementation in February of the central bank's first comprehensive licensing regime for virtual asset service providers (VASPs). Together, the measures draw boundaries around how digital assets can be used in regulated cross-border commercial and financial activities. 

eFX settlement restricted 

Brazil's Central Bank on 30 Apr approved a rule preventing electronic foreign exchange (eFX) providers from using stablecoins or other crypto assets to settle transactions with foreign counterparties. 

Under the eFX framework, which governs how payment institutions, e-money issuers and acquirers process international transfers, settlements must now be conducted through traditional foreign-exchange transactions or non-resident real-denominated accounts. 

Brazilians can continue to buy, sell, hold and transfer digital assets through authorized VASPs. The rule targets the settlement infrastructure used by some fintech firms, including providers that had relied on stablecoins such as USDT and USD Coin (USDC) to move funds across borders more efficiently. The restriction takes effect on 1 Oct, 2026.

The central bank has framed the measure as part of a broader effort to strengthen oversight of cross-border financial flows. Governor Gabriel Galípolo said in February 2025 that roughly 90% of crypto transaction volume in Brazil involved stablecoins, raising concerns about tax compliance and anti-money laundering controls. 

Not a stablecoin ban 

Industry participants argued the measures should be viewed as part of a broader effort to bring stablecoin activity under dedicated regulatory oversight rather than restrict it outright. 

"I strongly disagree with the 'Brazil banned stablecoins' tagline because I think that every country will do exactly what Brazil did, which is just to put it behind a licence," Jamal Raees, head of Payments at Polygon Labs, told Sandmark. 

Raees said the changes reduce regulatory ambiguity by establishing a clearer framework for companies using stablecoins in cross-border transactions. "All they're doing is they're enabling the same exact flows. Now you just have to be a virtual asset service provider," he said. 

The comments come as jurisdictions including the European Union, Hong Kong and Singapore have introduced stablecoin-specific rules aimed at giving businesses greater certainty around digital asset payments. 

Raees described Brazil as one of Polygon's most important markets, citing strong demand for stablecoin-based payment services. 

"Brazil is undoubtedly our top jurisdiction. We're seeing so much traction and so much demand from the Brazilian market specifically," he said. 

Customs rules updated 

Brazil's federal tax authority published a separate measure on 26 May incorporating guidance from the World Customs Organization into the country's customs valuation rules. 

The regulation addresses how imports paid for with cryptocurrencies should be treated for customs purposes. 

Because Brazil does not recognize cryptocurrencies as legal tender, importers may no longer be able to rely solely on crypto-denominated prices when declaring the value of goods to customs. A contract priced and settled exclusively in Bitcoin (BTC), Ether (ETH) or stablecoins could face additional scrutiny when authorities assess the value of imported goods and calculate duties. 

For example, a shipment purchased solely for 50,000 USDT or one Bitcoin may not, by itself, be sufficient for customs valuation purposes. The rule creates an exception for transactions that ultimately settle in fiat currency.  

The measure does not introduce new taxes on digital assets but clarifies how crypto-linked trade transactions should be treated under existing customs rules.