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

Brazil will require regulated financial institutions to report large crypto transfers to self-custody wallets starting October 1. Under Resolution BCB 588, institutions authorized by the Banco Central do Brasil must notify the Financial Activities Control Council (Coaf) for virtual asset transfers of at least 10000 dollars to or from self-custody wallets. This includes both deposits and withdrawals. The reporting obligation falls on the institution processing the transfer, with reports due by the next business day. Institutions do not need to determine if a transaction is suspicious before filing, allowing legitimate transfers to be reported if they meet the criteria. Brazil already requires reporting of suspicious transactions, and this new rule adds oversight on large movements between regulated platforms and self-custody. Additionally, Resolution BCB 584, effective January 1, 2027, will introduce precautionary holding procedures for certain outbound crypto transfers. Brazil's crypto market, valued at 252.5 billion dollars, is the largest in Latin America, reflecting significant activity despite a recent contraction of 1.6%. The new regulations aim to enhance scrutiny of crypto transactions as the market continues to expand.

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