Only Four Crypto Exchanges Await Central Bank Approval in Brazil

Key Takeaways

• Brazil’s strict new rules and $7.2M capital requirement are forcing massive crypto exchange exits.
• Just five VASPs applied ahead of the Oct 30 deadline, with analysts expecting only 10 of 300 to qualify.
• Foreign platforms like Lemon are exiting, and new applicants face up to a 3-year wait for permits.

Only Five Exchanges Have Applied for Operating Licenses in Brazil

The Central Bank of Brazil’s proposed and approved crypto regulatory framework is consolidating the country’s crypto industry, with many exchanges terminating operations and exiting the country.

According to Valor Economico, only five virtual asset service providers (VASPs) applied to receive authorization to operate in Brazil, with one already rejected and four still under review.

Internal sources claim the rejected application came from a company that failed to prove it was operating in the country before February 2, when the new rules came into effect, and also did not meet the new minimum capital standards. The companies seeking approval were not disclosed.

Tatiana Guazzelli, partner at Pinheiro Neto Advogados, believes the number of applications will rise in October, as the companies clarify their doubts about the new regime and receive clarification from the central bank.