Binance has announced that starting November 1, users in Brazil must specify the purpose of every cryptocurrency transfer to or from outside the country and identify the counterparty. The exchange is required to report these operations to Brazil’s Central Bank on a monthly basis to align with the country's foreign exchange rules.
According to Binance's FAQ outlining the updates, users sending crypto abroad or receiving it from overseas will be required to complete a questionnaire. Corporate accounts must additionally disclose whether the counterparty belongs to the same economic group. Binance clarified that these new requirements are distinct from the Travel Rule, which is scheduled to apply to domestic and international transactions in 2027 and 2028, respectively.
An international transfer is defined as any transaction where the other party is outside Brazil, or when users move their own assets between Brazil and an overseas account. Transactions strictly between Brazilian residents remain unaffected.
Users must select a transfer purpose using a Central Bank classification system. For transfers up to $50,000, a simplified list of 10 purposes is available, while transactions exceeding that amount require selection from a comprehensive list of 96 options without a generic "others" category. Additionally, current rules cap international transfers involving counterparties that are not authorized institutions in Brazil's foreign-exchange market at $100,000 per transaction, though Binance notes this limit may later rise to $500,000.
The practical implications affect both withdrawals and deposits. Withdrawals cannot be submitted without completing the questionnaire, and deposits from abroad may stay pending or be returned if the necessary transfer information is missing. For self-hosted wallets, users are not required to state a transfer purpose when sending or receiving crypto to their own wallet, but they must confirm ownership, and these transactions will be reported in a separate category to the Central Bank.
Binance noted that the provided information must accurately reflect the true reason for each transaction. Users who make a mistake can contact customer support, and only foreign exchanges assessed under Central Bank requirements will be listed as available options.
