According to Agência Brasil, this initiative is part of a set of measures aimed at strengthening the prevention of money laundering and the financing of terrorism.

The new rule applies to transactions involving self-custody wallets—those where the user retains control over the assets and private keys without a third-party custodian.

The monetary authority clarified that the $10,000 threshold establishes a reporting obligation but does not constitute a ban or a cap on cryptocurrency transactions.

Any transfer exceeding that amount between a virtual asset service provider and a wallet directly controlled by the client must be reported to the Council for Financial Activities Control (COAF).

The Central Bank noted that self-custody wallets can result in less data availability for tracking transactions; therefore, the new requirement aims to enhance transparency and the monitoring of high-value movements.

COAF receives, analyzes, and forwards information regarding transactions that may show signs of financial irregularities.

Reporting a transaction does not imply that it is illegal or that an investigation into the participants is underway.

Additionally, the new regulations set forth further requirements for virtual asset service providers regarding client protection and transparency, anti-money laundering measures, security, internal controls, and the provision of information to the regulator.

Companies must clearly disclose transaction risks, security policies, and applicable fees, as well as assess their clients’ risk profiles prior to certain transactions.

Certain specific obligations regarding the submission of information for Central Bank supervision will take effect on January 1, 2027.

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