BC expands fraud-prevention rules to the virtual asset market and creates temporary transfer hold mechanism

On August 7, 2026, the Central Bank of Brazil (“BC”) published BCB Resolution No. 584, which amends BCB Resolution No. 142 to expand the scope of fraud-prevention rules to virtual asset services and introduce temporary hold mechanisms applicable to certain transfers, further strengthening the security of Brazil’s virtual asset ecosystem.

With the issuance of BCB Resolution No. 584, the fraud-prevention framework established under BCB Resolution No. 142 will also apply to virtual asset service providers (“VASPs”), including those that are still in the process of adapting to the new regulatory framework.

The main innovation introduced by the new regulation is the creation of a mechanism requiring the temporary holding, for up to 24 hours, of certain virtual asset transfers destined for virtual asset service providers located abroad or for self-custodied wallets. The measure is precautionary and intended to enable a risk assessment of the transactions.

The hold requirement must be applied to transactions exceeding USD 10,000 or the equivalent amount in other currencies, taking into account both individual transaction amounts and the total volume transacted by the client on the same day. The measure must also be applied in situations identified by the institution as requiring a risk assessment, in accordance with its internal risk management procedures.

Institutions must notify clients of the adoption of the measure and maintain controls and records relating to fraud incidents and attempted fraud, including a description of the corrective measures adopted.

The rule also allows the release of the transfer before the end of the holding period, provided that the institution concludes, based on a duly documented assessment, that the elements initially identified do not justify maintaining the measure. This assessment must consider, among other factors, the risk profiles of the client, the transaction, and the counterparty, as well as the jurisdiction of the transaction.

BCB Resolution No. 584 enters into force on January 1, 2027.

Read the full text of BCB Resolution No. 584 on the BC’s website.

Demarest’s Banking and Finance team remains available to provide any further clarification regarding this matter.