Brazil’s Central Bank Eyes Tight Control on eFX Industry

The Central Bank of Brazil aims to control electronic currency exchange, and this casts doubt on the forex and crypto industries. The period of openness to public consultation is until Nov 2025.

The Central Bank of Brazil (BCB) has initiated a public consultation that seeks to open up electronic currency exchange (eFX) services to regulation.  This project will gauge market feedback on the way the eFX business ought to be regulated.

What the Proposed Regulation Means for eFX Providers

The consultation of BCB is provided with five proposals. To begin with, the eFX operations will be limited to the institutions that are approved by the BCB. 

Within a transition period, the existing providers are required to request authorization in order to continue services.

Secondly, the authorized bodies will be expected to report the intentions and monthly transacting information to the Central Bank. Thirdly, there will be a compulsory exclusive deposit account to deal with reais in and out of the system. 

Fourth, the regulation broadens eFX to cover transfers associated with securities and financial investments, and the transaction limit is US$10,000. 

Finally, the transactions of the customers should explicitly indicate the Total Effective Value (VET), which discloses all expenses in reais per unit of foreign currency.

Potential Impact on Crypto Brokers and Investors

This regulation may have a massive impact on cryptocurrency exchanges involving international transfers, should the extension be made.

The brokers in cryptos can be forced to adhere to the guidelines of the forex when they transact in cross-border currencies. 

The maximum limit of US 10,000 transactions could discourage bigger investors who transfer large amounts of cash to foreign countries using electronic forex systems.

Notably, the consultation in question is based on currency exchange only, but not on the wider scope of investment by electronic forex platforms. 

Such a difference explicates regulatory intentions as crypto markets await more rules based on the Virtual Assets Law 14,478/2022 in Brazil.

Until November 2, 2025, the people can send their comments on such proposals coordinated by Gilneu Francisco Astolfi Vivan, the Director of Regulation at BCB. 

This move is an indication of stricter control of electronic currency exchange operations in Brazil, the convergence of currency control with the rising tendencies of digital finance.

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