Brazil Orders $10,000 Reporting Threshold for Self-Custody Transfers
The rule takes effect Oct. 1 and applies to institutions authorized by Brazil’s central bank, with reports sent to the country’s financial crimes council.
Brazil will require regulated institutions to report crypto transfers of $10,000 or more involving self-custody wallets, tightening oversight of transactions between supervised platforms and user-controlled addresses.
Resolution BCB No. 588, issued Sept. 23 by the Banco Central do Brasil, covers transfers both to and from self-custodied wallets. It takes effect Oct. 1, 2026, with the threshold also applying to the equivalent value in another currency.
The institution processing the transaction must submit an objective report to Brazil’s Financial Activities Control Council, known as Coaf. Existing anti-money-laundering rules require those reports to be filed by the next business day.
Self-custody means the user controls the wallet’s private keys instead of a regulated intermediary. The rule places the reporting obligation on the institution handling the transfer, not on individuals.
Brazil’s crypto economy was estimated at $252.5 billion for the 12 months through June 30, 2026. A separate rule taking effect Jan. 1, 2027, will require certain virtual-asset service providers to hold qualifying transfers to foreign virtual-asset entities or self-custody wallets for 24 hours of additional fraud-risk analysis.
