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

Brazil's central bank has issued Resolutions 588 and 589, requiring virtual asset service providers to report self-custody wallet transfer transactions of $10,000 or more and strengthening anti-money laundering and counterterrorism financing oversight. According to Odaily, the rules will take effect on October 1, 2026.Resolution 588 says the transaction data will be submitted to the Council for Financial Activities Control, or COAF. The agency may use the information to organize transactions and build a database of self-custody addresses, recording the assets of Brazilian users who hold crypto through authorized centralized exchanges.Resolution 589 prohibits business with virtual asset service providers or entities that are not authorized to operate in Brazil. According to Odaily, only five VASPs have applied for licenses to operate in the country.