Brazil Sets $10K Self-Custody Crypto Reporting Rule for Institutions

Brazil's central bank has introduced a new regulation requiring covered institutions to report virtual-asset transfers worth at least $10,000 to or from self-custody wallets starting October 1, 2026. The rule, Resolution 588, amends the existing anti-money laundering and counter-terrorism financing framework for institutions under its supervision.

The new provision, added to Article 49 of Circular No. 3,978, covers transfers sent to a self-custody wallet and those received from one, as long as they meet the $10,000 threshold in value. This is separate from Brazil's existing 24-hour hold on qualifying $10,000 crypto transfers, which uses same-day transaction aggregation for customers.

The central bank emphasized that self-custody can reduce information available for monitoring and risk assessment purposes, as users directly control the private keys to their wallets. Covered institutions must communicate listed transactions to the Financial Activities Control Council (Coaf), including those involving self-custody wallets, under the established compliance process.