Brazil’s central bank has introduced a new reporting requirement for cryptocurrency transfers involving self-custody wallets.
Starting Oct. 1, 2026, covered financial institutions must report virtual-asset transfers worth $10,000 or more to or from self-custody wallets to Brazil’s Financial Activities Control Council, known as Coaf.
The rule comes from Resolution BCB No. 588, published by the Central Bank of Brazil on Sept. 23. It updates the country’s existing anti-money laundering and counter-terrorist financing rules.
The $10,000 amount is a reporting threshold. It does not mean users are banned from moving that amount, and it does not create a maximum transfer limit or automatically freeze qualifying transactions.
The rule applies in both directions. Transfers sent from an institution to a self-custody wallet and transfers coming from a self-custody wallet into an institution can fall under the reporting requirement.
Self-custody wallets are wallets where users control their own private keys instead of having their crypto held by a regulated company. Brazil’s central bank said these wallets can provide less information for monitoring and risk assessment because the assets are directly controlled by the user.
Resolution 588 adds self-custody crypto transfers to the existing list of transactions that covered institutions must report under Brazil’s AML framework.
Importantly, the new resolution does not say that several transactions below $10,000 must automatically be combined to reach the reporting threshold.
This is different from another rule introduced by Brazil’s central bank.
Resolution BCB No. 584, which takes effect in January 2027, allows certain transfers to foreign crypto service providers or self-custody wallets to be temporarily held for up to 24 hours under specific risk controls.
That rule can use same-day aggregation. For example, several transfers by the same customer can be combined when calculating whether the $10,000 threshold has been reached.
Resolution 588 does not contain the same explicit aggregation language. Its reporting requirement refers to a transfer with a value equal to or above $10,000.
However, this does not mean smaller transactions are outside Brazil’s AML monitoring system. Covered institutions still have separate obligations to identify transactions or activity that could indicate money laundering or terrorist financing.
Under the existing rules, qualifying reports must generally be sent to Coaf by the next business day after the transaction or related event.
Institutions are also not allowed to tell customers or other third parties that a Coaf report has been submitted.
The reporting responsibility falls on institutions covered by the central bank’s AML rules. It does not create a direct requirement for an individual simply because they own or control a self-custody wallet.
Resolution 588 also does not introduce a new crypto tax, fee or transaction charge. Crypto taxation remains covered by separate Brazilian tax rules.
The new reporting rule is part of Brazil’s broader effort to increase oversight of the crypto industry.
The country has been introducing new requirements covering crypto service providers, including licensing, capital requirements, governance, security and compliance.
Another measure, Resolution BCB No. 589, was also issued on Sept. 23. It introduces additional supervisory requirements for virtual-asset service providers, including information about customer balances, custody positions, proof of reserves and assets committed to staking.
Some of those requirements will begin on Jan. 1, 2027.
Another rule will also affect financial institutions from Nov. 6, 2026. Under the new framework, institutions authorized by Brazil’s central bank will generally be restricted from carrying out or facilitating virtual-asset market operations with crypto counterparties that are not authorized to operate in Brazil, subject to the exceptions in the regulations.
Overall, Brazil is expanding its crypto oversight step by step, with the Oct. 1 rule specifically focused on reporting larger transfers involving self-custody wallets.
