Brazil Central Bank Orders VASPs to Report Self-Custody Wallet Transfers Above $10,000

Brazil's central bank has issued Resolutions 588 and 589, requiring virtual asset service providers to report transfers to and from self-custody wallets worth $10,000 or more and tightening anti-money laundering and counter-terrorism financing oversight. According to ChainCatcher, the reported transaction data will be submitted to the Council for Financial Activities Control, which may use it to compile transactions and build a self-custody address database.The rules also prohibit business with virtual asset service providers or entities that are not authorized to operate in Brazil. The new requirements will take effect on October 1, 2026, and only five VASPs have applied for licenses to operate in Brazil.