- Only ~40 firms had licensing activity by Brazil’s October 30 deadline versus expectations of 150-200
- Capital requirements of R$10.8M to R$37.2M have pushed smaller crypto platforms out of the market
- Lemon (Argentina) exited Brazil; Coinext, NovaDAX & Digitra.com closed or scaled back operations
- Companies missing the deadline have 30 days to wind down; bank restrictions begin November 6
- Binance applied via Brazilian entity BBrasil; Itaú formalized its crypto trading & custody Oct 27
Low Turnout & Compliance Challenges
Despite Brazil’s central bank setting October 30 as a deadline for crypto licensing activities, only around 40 companies were involved in the licensing process rather than the 150 to 200 expected by the industry according to law firm PSNA.
Capital requirements of between R$10.8 million to R$37.2 million depending on the services and risk exposure has also made it challenging for smaller platforms.
With compliance requirements such as custodial requirements, reserve proof requirements, audit and AML requirements, smaller platforms have struggled to keep up without the infrastructure of larger exchanges.
In addition, Brazilian taxpayers completed R$505.5 billion worth of crypto transactions in 2025, an increase of 21.5% YoY. Around two thirds of this was in dollar-pegged stablecoins.
Major Applicants & Market Exits
The group of approximately 40 firms with licensing activity includes international cryptocurrency exchanges, banks, payment fintechs, and B3, Brazil’s stock exchange operator.
Binance applied for a license through its Brazilian entity BBrasil, while Itaú, Brazil’s largest private bank, formalized its crypto trading and custody services on October 27.
On the exit side, Argentine exchange Lemon shut approximately 15,000 Brazilian accounts and left the market. Coinext, NovaDAX, and Digitra.com also closed or scaled back retail operations in Brazil, reflecting the difficulty smaller platforms face meeting new regulatory standards.
Post-deadline Rules & Future Outlook
Companies that missed the October 30 deadline have 30 days to wind down operations in Brazil. From November 6, banks and payment institutions face restrictions on transacting with crypto providers that have not been authorized. The central bank could take up to two years to review new-entrant applications according to PSNA partner Tiago Severo Gomes.
Industry analysts expect regulatory focus to shift to stablecoin issuance and real-world asset tokenization including gold, real estate, vehicles, and receivables. A licensed-provider partnership model could allow smaller banks and cooperatives to offer crypto services without operating their own exchanges.
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment