Brazil mandates reporting for $10,000+ self-custody crypto transfers

The Central Bank of Brazil has issued Resolution BCB No. 588, introducing new reporting requirements for cryptocurrency transfers involving self-custody wallets. Under the new rule, covered financial institutions must report transfers worth $10,000 or more, or the equivalent in virtual assets, to the Council for Financial Activities Control (Coaf).

The regulation applies to transfers in both directions: from covered institutions to self-custody wallets and from self-custody wallets back into covered institutions. The central bank stated that the measure is intended to improve anti-money laundering and counter-terrorist financing monitoring, as self-custody arrangements can reduce the information available for risk assessment compared to assets held within supervised institutions.

Crucially, the $10,000 threshold is a reporting trigger rather than a transaction limit or a ban. The resolution does not prohibit users from transferring larger amounts, nor does it require institutions to block such transactions. Self-custody remains legal, but the move brings large-scale transfers between supervised infrastructure and user-controlled wallets into the automatic reporting framework.