Brazil will require regulated financial institutions to report crypto transfers worth at least the equivalent of $10,000 when funds move to or from self-custody wallets, starting October 1, 2026.
The requirement comes from Resolution BCB No. 588, published by the Central Bank of Brazil on September 23, adding qualifying virtual-asset transfers involving self-custodied wallets to the list of specific transactions that must be reported to the Financial Activities Control Council, or COAF, Brazil’s financial intelligence unit.
The rule is a reporting requirement, not a ban on self-custody or a $10,000 transfer limit. Users can still hold their own private keys and transfer amounts above the threshold. The obligation falls on covered institutions subject to the Central Bank’s anti-money-laundering rules.
Brazil’s New Rule Starts October 1
Resolution BCB No. 588 amends Circular No. 3,978, Brazil’s AML and counter-terrorist-financing framework for institutions authorized by the central bank.
The new provision covers transfers of virtual assets to or from a self-custodied wallet when the value equals or exceeds $10,000. The measure will take effect on October 1. That means the rule applies in both directions:
- Crypto sent from a regulated institution to a self-custody wallet
- Crypto received by a regulated institution from a self-custody wallet
Notably, the threshold is based on the value of the individual qualifying transfer rather than a fixed amount of Bitcoin, Ethereum or another token.
The $10K Threshold Is Not a Transaction Cap
Brazil is not limiting users to transfers below $10,000. A person can still send or receive larger amounts through a self-custody wallet.
Once a transaction reaches the threshold, however, the regulated institution handling the transfer must place it within the mandatory reporting framework.
The rule also does not state that a qualifying transaction must automatically be blocked, frozen or rejected.
Reporting a transaction to COAF does not by itself mean that the transaction is considered criminal or suspicious. Resolution 588 adds these transfers to a category of operations that must be communicated because they meet a specified threshold.
Who Has to File the Report?
The reporting obligation falls on institutions subject to the central bank’s AML framework, and not directly on the individual wallet owner.
Resolution 588 changes Circular No. 3,978, which applies to institutions authorized to operate by the Central Bank of Brazil.
For example, someone withdrawing $12,000 in crypto from a covered platform to a personal wallet does not file the Resolution 588 report personally simply because the amount exceeds the threshold. The institution handling the regulated side of the transaction is responsible for reporting.
Separate Brazilian tax-reporting requirements can still apply to crypto users depending on their circumstances.
Brazil Already Has Separate Crypto Tax Reporting Rules
Resolution 588 should not be confused with Brazil’s DeCripto tax-reporting system.
Brazil’s Federal Revenue Service introduced DeCripto under Normative Instruction RFB No. 2,291/2025.
Crypto transactions carried out from July 2026 onward are reported under that framework, which aligns Brazil with the Organization for Economic Co-operation and Development’s Crypto-Asset Reporting Framework.
The Federal Revenue Service also maintains separate rules for declaring crypto assets for tax purposes. Its current guidance says crypto holdings with an acquisition cost of at least R$5,000 for the same type of asset must be declared, when applicable, in the taxpayer’s annual return.
Moreover, the new $10,000 rule differs because it comes from the central bank and relates to AML reporting to COAF, rather than replacing existing tax declarations.
Resolution 588 Does Not Automatically Aggregate Smaller Transfers
Resolution 588 specifies transfers of virtual assets to or from self-custody wallets that individually reach the equivalent of $10,000.
The text does not state that several smaller transfers must automatically be added together to determine whether the $10,000 reporting threshold has been reached.
That differs from another Brazilian crypto rule scheduled to take effect in 2027, where same-day transactions can be aggregated for a separate anti-fraud measure.
The 24-Hour Hold Is a Separate Rule
The new regulation has also referenced a possible 24-hour holding period for certain crypto transactions.
That requirement does not come from Resolution 588 and does not begin on October 1.
A separate rule, Resolution BCB No. 584, introduces a precautionary retention period of up to 24 hours for certain outgoing virtual-asset transactions.
It is scheduled to take effect on January 1, 2027 and applies under different conditions.
| Rule | Starts | Main Requirement |
| Resolution BCB No. 588 | Oct. 1, 2026 | Report qualifying $10K+ self-custody transfers to COAF |
| Resolution BCB No. 584 | Jan. 1, 2027 | Allows up to 24-hour retention for certain outgoing transactions |
Table 1. Brazil’s Reporting Rule vs 24-Hour Retention Rule
The October rule is about reporting. The January measure is about a separate anti-fraud control.
Why Brazil Is Increasing Oversight of Self-Custody Transfers
Self-custody wallets let users move assets without leaving them under a regulated intermediary’s control, giving them direct ownership of their private keys, but they also reduce institutional visibility once assets leave a centralized platform.
Brazil’s new rule focuses on the point where funds move between those two environments.
By requiring reporting when larger transfers cross between a regulated institution and a self-custody wallet, authorities gain additional information without prohibiting users from controlling their own wallets.
The change places these transfers alongside other specific transactions already covered by Article 49 of Circular No. 3,978, including certain large cash and foreign-currency operations.
Brazil Is Expanding Its Wider Crypto Regulatory Framework
The country has been introducing new requirements for virtual-asset service providers (VASPs), transaction reporting, and tax information, bringing more crypto activity into existing financial compliance systems.
Brazil’s Federal Revenue Service moved to DeCripto in 2026, while the central bank is separately applying anti-money-laundering and supervisory rules to regulated crypto activity.
Resolution 588 therefore does not create a standalone self-custody regime. It extends an existing financial-monitoring framework to a specific category of crypto transfers.
What Comes Next
The $10,000 self-custody reporting requirement takes effect on October 1, 2026.
Covered institutions will need systems that can identify qualifying transfers and report them to Coaf under the existing anti-money-laundering framework.
The next major regulatory date is January 1, 2027, when separate rules affecting certain outgoing crypto transactions are scheduled to begin.
What this means for you: If you transfer at least the equivalent of $10,000 between a self-custody wallet and a regulated Brazilian institution, the institution may have to report that transaction to COAF. The rule does not require you to give up self-custody, and it does not create a $10,000 ceiling on crypto transfers.
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