Brazil's central bank will prohibit virtual assets, including stablecoins, from settling the specific leg between regulated electronic foreign-exchange providers and overseas counterparties starting Oct. 1. Resolution 561 requires that settlement to occur through a licensed foreign-exchange transaction or a qualifying non-resident real account. Individual international transfers using virtual assets remain permitted, as does the eFX model for netting and consolidating multiple payments. The rule closes an ambiguity left by Brazil's 2022 virtual-assets law, which authorized the central bank to determine which crypto operations constitute foreign-exchange activity without providing specific follow-up rules. Market participants say the change removes stablecoin settlement from the bulk-aggregation model, potentially adding Brazil's financial transaction tax, correspondent-bank charges and SWIFT fees. Brazil's tax authority recorded R$1.13 trillion in declared stablecoin transactions from August 2019 through December 2025, representing about 72% of declared crypto activity during that period. Stablecoins accounted for close to 80% of declared crypto volume in 2025, with USDT representing nearly 89% of declared stablecoin volume. The global stablecoin market is near $1.1 trillion. The targeted restriction reflects a broader regulatory effort to control cross-border settlement rails while leaving ownership and some other uses of dollar-pegged tokens intact. Argentina's plan to share crypto tax data internationally by the end of the decade adds to signs of tighter regional oversight. A July Bank of Italy study found that $200 USDC transfers across 10 international corridors cost between 0.3% and nearly 9%, while the blockchain transfer itself represented only a marginal share of total costs. The Financial Stability Board similarly said stablecoins' near-term role may be in hybrid systems built around existing bank money and settlement infrastructure rather than standalone global payment rails. Industry executives expect brokers to retain stablecoins for treasury management, liquidity transfers and internal settlement where permitted, while using licensed partners for restricted transaction legs.