Brazil Introduces Reporting for Transfers from Non-Custodial Wallets Over $10,000

Starting October 1, the Central Bank of Brazil is implementing new rules: transfers from non-custodial wallets amounting to $10,000 or more must be reported by crypto companies if they are related to the sending or receiving of virtual assets. The regulator published Resolution No. 588, which requires participants in the crypto market to provide information about such transfers to the Council for Financial Activity Control of Brazil (COAF). The $10,000 threshold serves as the basis for mandatory reporting, not a limit on transfers. Brazilian traders will still be able to conduct transactions above this amount. The tightening of controls is explained by the difficulty of tracking transactions when crypto assets are self-custodied. Separate rules will come into effect in 2027, including the possibility of temporarily delaying transactions for up to 24 hours upon reaching the $10,000 threshold. Previously, a bill was proposed in Brazil to freeze crypto assets suspected of fraud.

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