- Brazil will require covered institutions to report $10K+ self-custody transfers to Coaf.
- Resolution 588 creates a reporting threshold, not a crypto transaction limit or ban.
- The rule differs from Brazil’s separate 24-hour retention measure starting in 2027.
Brazil will require covered institutions to report qualifying crypto transfers involving self-custody wallets from October 1, 2026. The measure adds another layer of anti-money laundering oversight without banning self-custody or limiting transaction amounts.
Brazil Sets $10K Threshold for Self-Custody Transfers
The Central Bank of Brazil published Resolution BCB No. 588 on Sept. 23, amending the country’s existing AML framework. The resolution adds qualifying virtual-asset transfers involving self-custody wallets to mandatory reporting requirements.
Under the rule, transfers of $10,000 or more to or from self-custody wallets must be reported to Brazil’s Financial Activities Control Council (COAF). The requirement applies when covered institutions handle transfers in either direction.
The $10,000 threshold serves as a reporting trigger rather than a transaction limit. As a result, users can continue holding and transferring crypto through wallets controlled by their private keys.
Resolution 588 also does not require institutions to automatically block qualifying transactions. Instead, the measure places the reporting responsibility on institutions covered by Brazil’s financial regulatory framework.
The central bank said self-custody can reduce information available for monitoring and risk assessment. Regulated custodians, by contrast, maintain customer and transaction information within supervised financial institutions.
Brazil to Require Reporting of Self-Custody Wallet Transfers of $10,000 or More Starting October 1
Brazil’s central bank has issued Resolution BCB No. 588, amending existing AML/CFT rules to include certain virtual asset transfers involving self-custody wallets. Starting… pic.twitter.com/GflP4IDwTg
— Wu Blockchain (@WuBlockchain) September 25, 2026
New Rule Differs From Brazil’s 24-Hour Hold
Resolution 588 is separate from Resolution BCB No. 584, which introduced a different measure targeting certain crypto transfers. That rule allows qualifying outbound transactions to self-custody wallets or foreign virtual-asset providers to face temporary retention.
The 24-hour retention measure begins on January 1, 2027, rather than October 1, 2026. It also uses a different threshold calculation from the reporting requirement introduced under Resolution 588.
Notably, Resolution 584 allows same-day transfers by the same customer to be aggregated when determining whether its threshold is reached. Resolution 588 contains no equivalent automatic aggregation provision for its reporting trigger.
However, the absence of aggregation language does not remove existing obligations covering suspicious transactions. Institutions must continue assessing activity that could indicate money laundering or terrorist financing under Brazil’s established AML framework.
Brazil Expands Oversight of Crypto Market
The new requirement forms part of Brazil’s broader effort to strengthen oversight of digital assets. Resolution 588 follows other measures covering licensing, capital requirements, governance, security and compliance for virtual-asset providers.
The Central Bank also issued Resolution BCB No. 589 on September 23. The measure introduces additional supervisory information requirements involving customer balances, custody positions, proof of reserves and assets committed to staking.
Some provisions under Resolution 589 take effect on January 1, 2027. Meanwhile, restrictions affecting dealings with unauthorized virtual-asset service providers are scheduled to begin on November 6, 2026.
For crypto users, the October rule therefore changes reporting visibility rather than self-custody access. Transfers meeting the threshold will enter Brazil’s existing financial-intelligence reporting process when covered institutions facilitate them.
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