Binance has announced new checks for cross-border crypto transfers involving Brazilian users from Nov. 1, requiring transaction purposes and counterparty information before some deposits and withdrawals can be processed.
Summary
- Binance will require Brazilian users to provide transfer purposes and counterparty details starting November 1.
- Withdrawals cannot be submitted without required information, while some incoming deposits may remain pending temporarily.
- Transfers between Brazilian residents remain unchanged, while international transfers fall under foreign exchange reporting rules.
- Transfers above $50,000 require one of 96 purpose codes instead of the simplified ten-code list.
- A $100,000 per-transfer cap applies when foreign counterparties lack authorization in Brazil’s FX market framework.
Binance said the changes follow Resolution BCB No. 521/2025, which brought international virtual-asset transfers into Brazil’s foreign exchange framework and created new reporting obligations for crypto service providers.
The requirements cover individuals and companies using Binance in Brazil when crypto moves between a Brazilian resident and a non-resident. Sending assets to a user’s own account on an overseas exchange counts as an international transfer under the rule. Transfers between two Brazilian residents are not affected.
Binance users must explain why crypto is moving abroad
From Nov. 1, Brazilian users making international crypto transfers through Binance will need to provide the purpose of the transaction and identify the type of counterparty receiving or sending the assets.
Binance explained that users may need to provide up to three pieces of information. The first is the purpose of the transfer. The second identifies the counterparty as an individual, company, bank, exchange, investment fund, nonprofit or another category. Corporate accounts must state whether the other company belongs to the same economic group.
Purpose codes come from classifications set by Brazil’s central bank. Examples include transfers between a person’s own accounts, payments for goods, IT services, business services, donations and international travel. Binance said the category chosen must match the real reason for the transaction because the information is reported to the regulator.
The number of available categories depends on transaction size. Transfers worth $50,000 or less, or the equivalent in another currency, use a simplified list of 10 purposes. Transactions above $50,000 require users to choose from the full list of 96 classifications.
The $50,000 threshold applies to each transfer. Above that amount, Binance said there is no generic “other” category, meaning users must select the classification that best fits the transaction.
Brazil’s Resolution 521 requires reporting on information including the transaction date, purpose, whether crypto entered or left the country, customer identification, asset type and quantity, value in Brazilian reais, the foreign payer or recipient, country and relationship with the customer.
Missing information can stop withdrawals
Binance will not allow an international withdrawal request to be submitted until the required questionnaire has been completed.
For deposits arriving from abroad, the exchange said funds can remain pending while Binance waits for the requested information. In certain cases, the transaction may be returned to its sender when the necessary details are not supplied.
The requirement applies to every international deposit and withdrawal. API users are covered as well, with Binance requiring updated endpoints containing the additional regulatory fields. Institutional and VIP customers will receive separate technical instructions.
Users transferring crypto to an account they own on a foreign exchange must identify themselves as the counterparty. Binance said the purpose field will then be automatically entered as a transfer between accounts belonging to the same person, leaving the customer to confirm the declaration.
Transfers involving self-hosted wallets owned by the Binance customer receive different treatment. Users do not need to provide a purpose when moving assets to or from their own self-custody wallet, but they must confirm ownership. Binance will still report the transaction to Brazil’s central bank under a separate category.
Brazil’s separate $10,000 self-custody reporting rule took effect on Oct. 1 for qualifying transfers. That framework concerns anti-money-laundering reporting and should not be confused with Binance’s Nov. 1 purpose-code requirement for international transfers.
Some international transfers face a $100,000 cap
Brazilian rules place another condition on transfers involving foreign counterparties that are not authorized to operate in Brazil’s foreign exchange market.
Resolution BCB No. 277, as amended by Resolution 521, limits an international virtual-asset payment or transfer to the equivalent of $100,000 per transaction when the counterparty is not an institution authorized in Brazil’s FX market.
The limit is not a blanket $100,000 ceiling on every international crypto transfer. Its application depends on the status of the institution or entity on the other side of the transaction.
Binance said foreign exchanges available for transfers will appear in a drop-down menu after being assessed under central bank requirements. A platform that does not appear on the list can be submitted to customer support for review, but Binance said inclusion remains subject to internal analysis.
Central bank rules require Brazilian virtual-asset providers dealing with a foreign crypto service company to check whether the overseas firm is subject to effective prudential and conduct supervision. When the foreign jurisdiction does not apply such requirements, the Brazilian provider must document its own risk assessment before conducting business with that firm.
The new transfer procedure sits within Brazil’s expanding regulatory framework for crypto companies. In related coverage, Brazil’s new capital and licensing rules for crypto firms require providers to meet governance, risk-management and prudential standards as supervision moves closer to the framework used for brokers and financial institutions.
The Nov. 1 rules are separate from the Travel Rule
Binance has stressed that the November transfer questionnaire is not Brazil’s crypto Travel Rule.
The exchange stated that Travel Rule requirements will follow a different phased timetable, with domestic transfers scheduled for implementation in 2027 and international transfers in 2028. Binance said separate notices will cover those requirements.
Resolution 521 instead deals with the treatment of certain virtual-asset activities inside Brazil’s foreign exchange and international capital framework. The central bank classifies a crypto transfer as international when ownership changes between a resident and non-resident, between two non-residents, or when the same person sends or receives their own assets across Brazil’s border.
Brazil has separately limited the use of crypto inside its regulated electronic foreign-exchange payment channels. virtual assets cannot settle transactions inside Brazil’s supervised eFX payment system, although the measure does not prohibit ordinary crypto transfers through exchanges or wallets.
Binance said information gathered through its new international-transfer questionnaire will be sent to Brazil’s central bank in monthly regulatory reports. The exchange has not said the Nov. 1 change will halt ordinary trading or domestic crypto transfers between Brazilian residents.
The company said further details about the “transfer of operations to Brazil” will be provided in the coming days. Its Oct. 2 notice did not give additional details on that process.
Be the first to comment