Brazil proposes 24-hour hold on crypto transfers

• Brazil has proposed a rule allowing crypto transfers to be delayed for up to 24 hours if fraud is suspected.
• The proposal would let exchanges pause suspicious transactions before funds leave a platform.
• The measure is part of a broader effort to reduce crypto-related fraud and financial crime.

Brazil has proposed a rule that would allow crypto exchanges to hold some digital asset transfers for up to 24 hours when fraud is suspected.

The proposal was issued by Brazil’s central bank and is aimed at reducing fraud linked to crypto transactions.

The central bank said the delay could give exchanges more time to review suspicious transfers before funds leave a platform.

The proposed rule would apply to transfers that show signs of fraud or unusual activity, according to the central bank.

The central bank said exchanges would need procedures to assess risk and decide when a temporary hold is justified.

Brazil has introduced several measures in recent years to strengthen oversight of the crypto sector and reduce financial crime.

The proposal is still under review and would become part of Brazil’s broader regulatory framework for digital asset services if adopted.