Brazil’s central bank has put new compliance rules in place for virtual asset service providers, setting capital, audit, anti-money laundering, and ongoing reporting requirements that could sharply reduce the number of operating crypto firms in the country. The highest capital threshold reaches 37.2 million reais, or about $7.2 million.
Out of roughly 300 relevant institutions currently in the market, only 20 to 25 are seen as likely to meet the conditions needed to apply for authorization, and just 10 are expected to secure a license. That leaves a large share of the sector at risk of shutting down or withdrawing.
Some smaller platforms, including Bitnuvem, NovaDAX, Digitra, and Coinext, have already ended or restructured their retail operations, though they did not attribute those decisions to the new rules. Firms that fail to meet the requirements will also face ongoing compliance costs that may make parts of their business difficult to sustain. Providers must apply for authorization by Oct. 30. Those that do not apply will have 30 days to wind down operations and notify customers. Isabel Longhi, Ripple’s head of public and regulatory policy for Latin America, said consolidation is expected as Brazil’s crypto market matures, but the rules will limit innovation in the short term.
Brazil’s central bank has introduced new rules requiring virtual asset service providers to meet compliance standards covering capital, audits, anti-money laundering controls, and ongoing reporting. The highest capital requirement is set at 37.2 million reais, or about $7.2 million.
Among roughly 300 related institutions now operating in the market, only 20 to 25 are considered likely to qualify to apply for authorization. Just 10 are expected to win licenses, leaving roughly 290 crypto exchanges and related platforms facing a possible exit from the market.
Some smaller platforms have already ended or restructured their retail businesses, including Bitnuvem, NovaDAX, Digitra, and Coinext. Those companies, however, did not link their decisions to the new rules.
For firms that cannot meet the standards, the challenge is not limited to the initial threshold. They will also face ongoing compliance costs, and some business lines may be hard to maintain. Under the rules, affected institutions must apply for authorization by Oct. 30. Those that do not apply must end operations within 30 days and notify customers.
Isabel Longhi, Ripple’s head of public and regulatory policy for Latin America, said market consolidation is expected as Brazil’s crypto market matures, but the new framework will limit innovation in the short term, according to Bitcoin.com News.
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