The Central Bank of Brazil issued BCB Resolution No. 588 on September 23, 2026, expanding the scope of fund flow oversight. Starting October 1, 2026, all registered financial institutions will be required to report every virtual asset transfer worth the equivalent of $10,000 or more to the Council for Financial Activities Control (Coaf).
The reporting rule targets both directions of fund movements simultaneously. Financial institutions must report outbound asset transfers to self-custody wallets and record inbound flows from self-custody wallets. The $10,000 nominal threshold is set to align with reporting standards for large cash transactions and physical foreign exchange operations under similar regulatory frameworks.
Reasons for Extra Oversight
The central bank reasoned that self-custody wallets reduce the information available for transaction monitoring purposes. Asset owners hold their own private keys without third parties, making fund movements less identifiable compared to assets deposited on centralized exchanges.
The administrative policy does not alter the legal status of asset ownership. The resolution does not prohibit the public from using self-custody wallets and sets no maximum transfer limit per account. Reporting institutions are also not instructed to block transactions reaching the $10,000 threshold, but simply to submit the list of transactions to financial authorities.
Two Distinct Regulatory Layers
Resolution 588 serves as a direct amendment to Circular No. 3,978, which houses Brazil’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulatory framework. The reporting mandate is not a standalone law, but rather the inclusion of virtual asset parameters into existing reporting obligations binding banking institutions.
The reporting obligation to Coaf is separate from BCB Resolution No. 584 regarding anti-fraud rules published in August 2026. The August regulation specifically establishes a 24-hour fund-holding mechanism for outbound transfers to foreign service providers and self-custody wallets. This fund retention will only take effect on January 1, 2027, complementing the $10,000 reporting requirement that becomes active earlier.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
