Brazil Cracks Down on Self-Custody Crypto Transfers Over $10K

The Banco Central of Brazil has issued Resolution BCB No. 588, which requires regulated financial institutions to report crypto transfers worth at least $10,000 when funds move to or from self-custody wallets.

This rule takes effect on October 1, 2026, and applies in both directions: a qualifying withdrawal from a regulated institution to a customer-controlled wallet falls within the rule, as does a qualifying deposit arriving from a self-custody address.

The measure targets situations where users control their own private keys, making it more difficult for institutions to monitor and assess risk.