Brazil Cracks Down on Crypto Self-Custody Transfers

Brazil's $252 billion crypto market will face increased scrutiny starting October 1, when regulated financial institutions must report large crypto transfers involving self-custody wallets worth at least $10,000.

The new rule, part of Resolution BCB 588, requires institutions to notify the Financial Activities Control Council (Coaf) whenever they send or receive virtual assets above this threshold from a self-custody wallet. This includes both deposits and withdrawals directly controlled by users.

Exchanges, banks, and other covered providers will need to identify self-custody counterparties, calculate transaction values, and integrate automatic Coaf reporting into their monitoring systems before the October deadline.