Central Bank of Brazil: Will require reporting of transfers over $10,000 from self-custody wallets and prohibit unauthorized cryptocurrency service providers from operating

The Central Bank of Brazil issued resolutions No. 588 and No. 589, requiring virtual asset service providers (VASP) to report self-custody wallet transactions that amount to or exceed $10,000, and to strengthen anti-money laundering and counter-terrorism financing regulations.

Resolution No. 588 stipulates that relevant transaction data will be submitted to the Financial Activities Control Council (COAF). This agency may compile transactions based on this data and establish a self-custody address database to record the asset status of Brazilian users holding cryptocurrencies through authorized centralized exchanges. Resolution No. 589 prohibits conducting business with virtual asset service institutions or entities operating in Brazil without authorization. The new regulations will take effect on October 1, 2026, and currently, only 5 VASPs have applied for licenses to operate in Brazil.