Brazil's central bank will require covered institutions to report self-custody crypto transfers of $10,000 or more starting October 1, 2026. The rule adds anti-money-laundering oversight without banning self-custody wallets or capping how much users can move through them.
Reporting Trigger, Not a Transaction Limit
The Central Bank of Brazil published Resolution BCB No. 588 on Sept. 23, amending the country's existing AML framework. Under the rule, transfers of $10,000 or more to or from self-custody wallets must be reported to Brazil's Financial Activities Control Council, known as Coaf, whenever a covered institution handles either side of the transfer.
The threshold works as a reporting trigger rather than a cap. As a result, users can keep holding and moving crypto through wallets controlled by their own private keys, and institutions are not required to automatically block qualifying transactions. The central bank said self-custody can reduce the information available for monitoring and risk assessment, while regulated custodians keep customer and transaction data within supervised institutions.
Separate From the 2027 Retention Rule
Resolution 588 is distinct from Resolution BCB No. 584, which introduced a 24-hour retention measure for qualifying outbound transfers to self-custody wallets or foreign virtual-asset providers. That rule takes effect January 1, 2027, uses a different threshold calculation, and allows same-day transfers by the same customer to be aggregated. Resolution 588 contains no equivalent aggregation provision, though institutions must still assess activity that could indicate money laundering or terrorist financing under Brazil's broader AML framework.
Part of a Wider Compliance Push
The Central Bank also issued Resolution BCB No. 589 on September 23, adding supervisory information requirements covering customer balances, custody positions, proof of reserves and assets committed to staking. Some of those provisions take effect January 1, 2027, while restrictions on dealings with unauthorized virtual-asset service providers begin November 6, 2026.
For crypto users, the October rule changes reporting visibility rather than access to self-custody.
Source: Live Bitcoin News
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