Brazil's Central Bank tightens crypto rules and expands monitoring of self-custody wallets

Brazil's Central Bank (BC) published two resolutions on September 23, 2026 that adjust the rules for virtual asset service providers and strengthen anti-money laundering and counter-terrorist financing (AML/CFT) requirements in this market. Resolutions BCB No. 588 and No. 589 take effect on October 1, 2026.

What changes for self-custody users

The main change concerns self-custody wallets, in which users hold the private keys that give access to their funds themselves. Transfers of virtual assets to or from these wallets worth US$10,000 or more must now be specifically reported to the Council for Financial Activities Control (Coaf), Brazil's financial intelligence unit.

According to the BC, the measure aims to improve oversight of transactions where less information is available for risk monitoring than when assets are held by an authorized institution.

The rule also adds foreign exchange transactions involving the delivery or receipt of US$10,000 or more in foreign cash to the list of automatic reports to Coaf. The monetary authority says this gives more uniform treatment to cash transactions.

Service providers

For companies in the sector, the changes cover the reporting of information for supervision and monitoring and the deadline for other institutions to stop dealing with counterparties that are neither authorized nor in the process of authorization. The provisions on data reporting only take effect on January 1, 2027.

The BC says the goal is to strengthen the security and integrity of the market and give participants more predictability.

The timing coincides with another milestone: October 2026 is the deadline for virtual asset service providers already operating in Brazil to file for authorization. The rules that created this requirement were announced in November 2025, after four public consultations held since 2023, and took effect on February 2, 2026.

Analysis

Regulation responds to a legitimate demand for security and for fighting financial crime in a market that grew without clear rules. At the same time, it raises questions that deserve public debate: how to balance oversight with the privacy of people who hold their own assets, and how to prevent compliance costs from concentrating the sector in the hands of the largest companies. For Leftist Crypto, regulation is necessary, and deciding how to regulate is a political question.