Brazil proposes stablecoin hold for large transfers

• Brazil has proposed a mandatory 24-hour holding period for stablecoin cross-border transfers exceeding US$10,000.
• The measure would give virtual asset service providers time to complete risk assessments before releasing funds, while Paraguay has secured convictions in an illegal Bitcoin mining case.
• The developments highlight increased regulatory and enforcement activity across Latin America's cryptocurrency sector.

Brazil has proposed a mandatory 24-hour holding period for stablecoin transfers above US$10,000 to allow virtual asset service providers to complete risk assessments before processing cross-border payments.

The proposal would require exchanges and other virtual asset service providers to assess whether transactions match a customer's risk profile, although funds could be released earlier if the identified risks are resolved.

“The retention is exclusively precautionary in nature and is intended for risk analysis of the respective operation, not implying the definitive unavailability of assets,” the Central Bank of Brazil said.

In Paraguay, two individuals were convicted and sentenced to two years in prison for allegedly stealing electricity to operate Bitcoin (CRYPTO:BTC) mining equipment, although the court suspended execution of the sentences.

Paraguay's National Power Administration said the ruling establishes a legal precedent for future cases involving illegal cryptocurrency mining and electricity theft.

Separately, Binance pledged US$3 million in disaster relief for people affected by recent earthquakes in Venezuela through vouchers distributed in Tether (CRYPTO:USDT).

The latest developments reflect a broader trend across Latin America as regulators tighten oversight of digital asset transactions while authorities expand enforcement against illegal cryptocurrency operations and companies increase humanitarian support using blockchain-based payments.

At the time of reporting, Bitcoin price was $60,100.35.