Brazil’s central bank, Banco Central do Brasil, has banned the use of cryptocurrencies and stablecoins for settling cross border payments in regulated systems.

 

The ban follows the issuance of Resolution BCB No. 561, which amends Brazil’s foreign exchange rules. Under the amendment, regulated electronic foreign exchange (eFX) systems in the country will no longer be able to use virtual assets to settle cross border payments and remittances.

 

While this does not outright ban the use of cryptocurrencies for cross border transfers, the rule restricts their use in foreign exchange settlements. The measure was introduced to strengthen regulatory supervision and oversight and will take effect on October 1, 2026.

 

This restriction comes shortly after Resolutions BCB 519, 520, and 521 took effect on February 2, 2026. Although the framework was initially published in November last year, it requires all Virtual Asset Service Providers (VASPs), including crypto exchanges and wallet providers, to obtain a Sociedade Prestadora de Serviços de Ativos Virtuais (SPSAV) license from Brazil’s authorities before they can legally operate in the country. Non compliant companies must shut down if they fail to secure the license within a nine month grace period.

 

The State of Crypto in Latin America

Crypto adoption in Latin America continues to grow strongly. In 2025, the region saw a 60% increase in regional transaction volume, reaching nearly $730 billion.

 

Since many countries in Latin America have been hit by the harsh effects of inflation, stablecoins have become a backbone for many in the region, acting as digital dollars for households and businesses, and accounting for about 80-90% of the total annual transaction volume in several countries.

 

Brazil continues to lead crypto adoption in Latin America, accounting for about one third of the total crypto transaction volume in the region, followed by Argentina and Mexico. Through the acquisition of Simpaul in 2025, a Brazilian brokerage firm, Binance became the first global exchange to become a broker dealer in the country, allowing it to expand its financial offerings.

 

Crypto asset manager Hashdex also launched XRPH11, the world's first spot XRP ETF in Brazil, which was later listed on B3, Brazil’s stock exchange.

 

 

OpenFX, a fintech infrastructure startup founded by Prabhakar Reddy, co-founder of crypto brokerage company FalconX, has raised $94 million to expand its stablecoin-based cross-border foreign exchange (FX) payment rails.

 

The Series A round, which took place in March, was led by Accel and Atomico, with other investors including Lightspeed Faction, M13, Northzone, and Pantera participating.

 

 

The $94 million raised is aimed at expanding OpenFX’s presence in Latin America. Despite the region being a challenging market to enter, OpenFX reported strong success during a test deployment in Mexico, Brazil, and Argentina.

 

“Within six weeks, LATAM became our highest-volume region. We had succeeded at scale where so many other players were still struggling with proof of concepts,” the company said.

 

The team attributes its success in the region to its ability to deliver liquidity globally, quickly, and reliably, as well as its deep understanding of what payment service providers (PSPs) and remittance providers require.

 

OpenFX also plans to expand into Southeast Asia. Despite the region having some of the world’s more developed payment systems, cross-border payments remain slow and fragmented. By building a deep liquidity infrastructure, OpenFX aims to address this issue and has said it will be launching in Singapore, Hong Kong, and the Philippines.

 

With these expansion plans underway, OpenFX will extend its presence beyond the United States, United Kingdom, the United Arab Emirates, and India, where it currently operates.

 

The Team’s Progress So Far

Since its launch in 2024, the OpenFx cross-border infrastructure has processed billions of dollars, with an annualized processing volume of $45 billion.

 

In its first month of operation, the team says it processed $500,000. Eight weeks later, that figure had grown to $500,000 per week. Three months after launch, it was processing $500,000 per day, and today it processes approximately $500,000 per minute, with 98% of transactions settling in under 60 minutes.

 

The team also says it has onboarded more than 100 global institutional clients to its platform, including fintechs, neobanks, remittance platforms, and payroll processors.

 

OpenFx has now raised a total of $117 million, including $23 million in 2025 in a funding round led by Accel.

 

 

An Argentine court has ordered a nationwide block on the prediction market platform Polymarket over unauthorized gambling activities.

 

The ruling, issued by the Criminal, Misdemeanor and Offenses Court No. 31 in Buenos Aires, directs the country’s national communications and media regulator, the Ente Nacional de Comunicaciones (ENACOM), to block access to Polymarket and its variants.

 

 

In the ruling, Judge Susana Beatriz Parada, the presiding judge of the court, instructed ENACOM to carry out all possible blocking measures, directly, indirectly, or through internet service providers (ISPs), and to promptly inform the court of any obstacles that could prevent full compliance with the ruling.

 

In addition to the nationwide ban, the court ordered the removal of the Polymarket application from Android and iOS stores, effectively preventing existing users from accessing it.

 

While the ruling appears severe, it follows an investigation into a complaint filed by the Buenos Aires City Lottery (LOTBA), the government agency responsible for regulating legal gambling activities in Argentina’s capital.

 

After receiving the complaint, the court, presided over by Judge Susana Parada, instructed Juan Rozas, head of the City’s Specialized Gambling Prosecutor’s Office (FEJA), to conduct an investigation that ultimately led to the decision.

 

According to Argentine authorities, Polymarket offers features that “significantly increase risks for users.” These include the ability to conduct transactions using cryptocurrencies and credit cards, as well as a lack of identity and age verification, allowing anyone to create an account within minutes.

 

Authorities say these features raise serious concerns about minors, who can easily access the platform and begin gambling without oversight.

 

 

Polymarket and Regional Bans

With this ban, Argentina joins more than 33 countries and regions that have restricted or prohibited the activities of Polymarket, many citing the company’s unlicensed gambling operations.

 

Colombia was the first South American country to block Polymarket. In late 2025, Coljuegos, the country’s gambling regulator, declared Polymarket’s activities illegal, stating that the company was offering unauthorized online betting.