Brazil mandates reporting for crypto transfers exceeding $10,000

The Central Bank of Brazil (Banco Central do Brasil) has introduced Resolution BCB No. 588, a new regulatory measure targeting cryptocurrency transactions involving self-custody wallets. Effective October 1, 2026, the rule mandates that regulated financial institutions, payment providers, and virtual asset service providers (VASPs) report any transfer to or from a non-custodial wallet that meets or exceeds the equivalent of $10,000 USD.

Under this framework, qualifying transactions must be reported to Brazil’s Financial Activities Control Council (Coaf) by the next business day. Unlike traditional suspicious activity reports, this requirement is an objective, automated threshold trigger. This means legitimate transfers between centralized exchanges and private user wallets will be reported solely based on the transaction amount and type, regardless of whether the activity is deemed suspicious.

The measure aims to close information gaps in decentralized storage and strengthen anti-money laundering (AML) and counter-terrorist financing (CTF) oversight within Brazil’s $252.5 billion crypto market. This resolution is part of a broader series of regulatory tightening measures expected to continue through 2027.