Brazil mandates reporting for $10,000 self-custody crypto transfers

The new directive amends Article 49 of Circular 3,978, placing self-custody transfers under the oversight of the Financial Activities Control Council, known as Coaf. While the rule increases transparency, it does not function as a ban or a transaction cap. Institutions must report these movements regardless of whether the funds are moving to or from a private wallet. Unlike other recent anti-fraud measures, Resolution 588 does not explicitly mandate the aggregation of multiple smaller transactions that might total $10,000 within a single day.

The central bank justifies the requirement by noting that self-custody wallets can obscure transaction data, complicating risk assessments that are otherwise straightforward when assets remain within supervised entities. Institutions are prohibited from notifying customers when such reports are filed. This change joins a broader series of regulatory updates in Brazil, including Resolution 589, which mandates that virtual-asset service providers submit detailed data on custody positions, customer balances, and staking commitments by early 2027.