Brazil Central Bank tightens crypto AML reporting for self-custody transfers
Published · Updated
What happened
The Central Bank published a new rule requiring reporting to Coaf of virtual-asset transfers of at least US$10,000 when self-custodied wallets are involved. The rule adds compliance obligations for service providers and begins to take effect from October 1.
Why it matters
The measure expands transaction visibility at the point where regulated crypto firms interact with private wallets, an area often used for transfers outside custodial platforms. It raises compliance requirements for exchanges and payment intermediaries and can change transaction monitoring, onboarding, and reporting practices within days.
On September 23, Brazil's Central Bank tightened anti-money-laundering oversight for virtual-asset transactions by requiring reports to Coaf on crypto transfers of US$10,000 or more involving self-custodied wallets. The measure also imposes new compliance duties on virtual-asset service providers starting October 1. The change puts immediate operational pressure on exchanges and other intermediaries while signaling closer scrutiny of flows between regulated platforms and private wallets.
Watch for
Banco Central do Brasil publication of the operative circular, FAQ, or compliance guidance by 2026-09-27 Coaf acknowledgement of reporting format or enforcement expectations for self-custody transfers by 2026-09-27 ABCripto or Febraban public note detailing member implementation changes or legal objections by 2026-09-27 Major Brazil-based exchanges' updated terms, withdrawal screens, or transaction-threshold notices for self-custody wallets by 2026-09-27
Sources
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