Brazil’s central bank has set capital requirements for crypto exchanges as high as 37.2 million Brazilian reais, or about $7.2 million, according to Bitcoin.com. The report said that out of roughly 200 to 300 virtual asset service providers operating locally, only 10 to 25 appear qualified to apply under the new framework. It added that the number of firms that may actually secure a license could end up near 10. Companies must file applications by Oct. 30, and those that do not apply will have 30 days to wind down operations. The report also noted that several platforms, including Bitnuvem and NovaDAX, have already announced restructurings or an end to retail operations. At the same time, those companies did not attribute their decisions to the new capital rule. The figures point to a sharp contraction in the number of operating exchanges if the requirements are enforced as described.
Brazil’s central bank has imposed capital requirements on crypto exchanges of as much as 37.2 million Brazilian reais, about $7.2 million, a move that could force roughly 290 platforms out of the local market, according to Bitcoin.com.
The report said that among Brazil’s 200 to 300 virtual asset service providers, only 10 to 25 currently meet the conditions to apply. It estimated that the final number of licensed firms may be around 10.
Companies are required to submit their applications by Oct. 30. Firms that do not apply must end their operations within 30 days.
Several platforms, including Bitnuvem and NovaDAX, have already announced restructurings or the suspension of retail business. The report said those companies did not link their decisions to the new rule.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
