Brazil Enacts Self-Custody Threshold for Crypto Transfers Over $10,000

Brazil's $252 billion crypto market is getting stricter regulations. Starting from October 1st, regulated financial institutions will be required to report large crypto transfers involving self-custody wallets if they're worth at least $10,000.

The rule applies to both deposits and withdrawals from self-custody wallets, controlled directly by users. The filing obligation falls on the institution processing the transfer, with qualifying transactions reported to Coaf by the next business day under Brazil's existing anti-money-laundering framework.

Brazil already requires financial institutions to separately report suspicious transactions, but this new provision adds another layer of scrutiny by giving authorities visibility into large movements crossing the boundary between regulated platforms and self-custody, even where no suspicious activity has been identified.