Brazil Requires Declaration for Transfers Over $10,000 from Self-Custody Wallets, Bans Unauthorized Crypto Service Providers

The Central Bank of Brazil has issued resolutions No. 588 and No. 589, requiring virtual asset service providers (VASPs) to declare transactions involving transfers to and from self-custody wallets that amount to or exceed $10,000, while strengthening 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), which will organize the transactions and establish a database of self-custody addresses, recording 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 five VASPs have applied for licenses to operate in Brazil.

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