Brazil mandates reporting of $10,000 self‑custody crypto transfers

Brazil’s central bank has introduced a new anti‑money‑laundering requirement that obliges supervised financial institutions to report any virtual‑asset transfer of $10,000 or more to or from a self‑custody wallet. The rule takes effect on 1 October 2026.

Scope of the reporting obligation

Resolution 588 amends Article 49 of Circular 3,978 and adds a specific category of “self‑custody” transfers. The requirement applies in both directions – outgoing transfers to a self‑custody wallet and incoming transfers from one – whenever the transaction value equals or exceeds the $10,000 threshold.

What is not changed

The measure does not ban self‑custody, impose a transaction ceiling, or freeze transfers. It merely creates a reporting trigger for covered institutions, which must submit the information to Brazil’s Financial Activities Control Council (Coaf) by the next business day after the transaction.

Relation to other Brazilian crypto rules

Resolution 588 is separate from the 24‑hour retention rule (Resolution 584) that will start in January 2027 and includes same‑day aggregation for qualifying transfers. Unlike Resolution 584, the new rule does not contain language that automatically aggregates multiple sub‑$10,000 transfers for reporting.

Compliance timeline

• 1 Oct 2026 – reporting requirement for $10,000+ self‑custody transfers becomes effective.
• 1 Jan 2027 – 24‑hour hold rule (Resolution 584) and related data‑submission obligations (Resolution 589) take effect.
• 6 Nov 2026 – restrictions on dealing with un‑authorized virtual‑asset counterparties begin.

Regulatory context

The central bank highlighted that self‑custody reduces the amount of information available for monitoring, prompting the need for institutional reporting. The rule sits alongside existing AML/CFT obligations for large cash and foreign‑currency transactions, and does not create new taxes, fees, or transaction limits.