Brazil’s central bank updated its foreign exchange rules to restrict the use of crypto assets in regulated cross border payments, tightening oversight of stablecoin based settlement inside the country’s eFX framework.

The Banco Central do Brasil published Resolution BCB No. 561 on April 30, changing rules for eFX, a regulated model used for digital international payments, purchases, withdrawals, and transfers.

The new rule says payments or receipts between an eFX provider and its foreign counterparty must happen exclusively through traditional foreign exchange operations or through Brazilian real accounts held by non-residents, with virtual assets prohibited in that flow.

The restriction means an eFX provider…