Officials said cryptocurrencies, including fiat-backed stablecoins, are being used to move proceeds from financial fraud before victims or institutions can recover them. Stablecoins dominate Brazil's crypto landscape: tax authority data shows dollar-pegged tokens such as USDT and USDC account for up to 90% of reported transactions in some months, with Binance controlling an estimated 76% of the USDT market. Chainalysis ranked Brazil fifth globally for crypto adoption in its 2025 index, with roughly $318.8 billion in on-chain value received over the prior year.
Industry reaction has been critical. ABcripto, the Brazilian cryptoeconomy association, argued that a time-based hold is technically ill-suited to combat fraud and could push users toward unregulated channels such as DeFi protocols or peer-to-peer trading, reducing traceability. The association also questioned the rulemaking process, saying the sector received only four business days to comment. Regina Pedroso, president of tokenization group Abtoken, warned the policy could impose costs on legitimate users and weaken the competitiveness of domestic exchanges.
The resolution also requires covered institutions to maintain daily records of fraud incidents and attempted fraud, adding a new operational layer to compliance programs. As Brazil aligns virtual asset service providers with brokerage-level regulation starting in 2027, the 24-hour hold represents a concrete friction point in a market built on instant settlement. Whether the screening window meaningfully reduces fraud losses or simply redirects large flows outside the regulated perimeter remains the central unresolved question.
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