Brazil Cracks Down on Crypto Transfers, Requires Self-Custody Reporting

Brazil is introducing new regulations for its crypto market, requiring institutions to report large transfers involving self-custody wallets from October 1. The rule affects both incoming and outgoing transactions worth $10,000 or more, expanding anti-money laundering (AML) visibility across a $252.5 billion market.

The requirement applies to regulated firms authorized by the Banco Central do Brasil, which must notify the Financial Activities Control Council (Coaf) of qualifying transfers within one business day. The threshold operates automatically, meaning institutions don't need to assess suspicious activity before filing a report.

These measures are part of Brazil's efforts to increase scrutiny at the point where crypto enters or leaves its regulated financial system. Exchanges and other covered providers will need to identify self-custody counterparties, calculate transaction values, and integrate automatic Coaf reporting into their monitoring systems by October 1.