Brazil Tightens Crypto Regulations with New Resolutions
- Resolution 588 mandates reporting of self-custody crypto transfers over $10,000.
- Resolution 589 bans operations with unauthorized crypto providers in Brazil.
- New rules take effect on October 1, 2026, aiming to consolidate the market.
- Only five Virtual Asset Service Providers (VASPs) have applied for a license under the new regulations.
- The Central Bank of Brazil aims to enhance oversight of self-custody wallets and user-controlled funds.
The Central Bank of Brazil has introduced stringent regulations to improve oversight and control over cryptocurrency transactions within the country. These measures are designed to strengthen anti-money laundering efforts and ensure that only authorized entities operate in the Brazilian crypto market.
By requiring detailed reporting on large self-custody transactions and banning unauthorized providers, these resolutions signify a significant shift towards tighter regulation and market consolidation in Brazil’s crypto industry. (Source)
