Brazil will require declaration of self-custodial wallet transfers above $10,000, and ban unauthorized crypto service providers from operating

Odaily News: The Central Bank of Brazil has issued Resolutions No. 588 and No. 589, requiring virtual asset service providers (VASPs) to declare inbound and outbound transactions involving self-custodial wallets with amounts reaching or exceeding $10,000, and strengthening anti-money laundering and counter-terrorism financing supervision.

Resolution No. 588 stipulates that relevant transaction data will be submitted to the Financial Activities Control Board (COAF). The agency may use this to organize transactions and establish a database of self-custodial addresses, recording the asset situation of Brazilian users who hold crypto assets 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. Currently, only 5 VASPs have applied for licenses to operate in Brazil. (Bitcoin.com News)