Brazil Tries to Reel in Self-Custody Crypto Transfers with New Reporting Rule

Brazil's central bank has issued a new regulation requiring financial institutions to report cryptocurrency transfers of $10,000 or more involving self-custody wallets. The rule aims to tighten oversight of transactions between regulated platforms and user-controlled addresses.

Resolution BCB No. 588, published on September 23 by the Banco Central do Brasil, sets a threshold of $10,000 for reporting purposes, equivalent in value to any other currency. The institution handling the transaction must submit an objective report to Brazil's Financial Activities Control Council (Coaf) within the next business day.

The regulation places the reporting obligation on financial institutions, not individuals who control their own wallets' private keys. This move is part of a broader effort to monitor the country's growing cryptocurrency economy, estimated at $252.5 billion for the 12 months through June 30, 2026.