Brazil central bank raises VASP licensing capital threshold, industry expects only about 10 approvals

Brazil’s central bank has set much higher capital requirements for virtual asset service providers under its final licensing rules, lifting the minimum threshold to roughly 10.8 million to 37.2 million Brazilian reais, or about $2.11 million to $7.2 million, depending on business model and risk. That compares with 1 million to 3 million reais, or about $195,000 to $586,000, in the earlier consultation draft. The final framework also adds requirements covering governance, internal controls, anti-money laundering procedures, auditing and ongoing reporting. Industry estimates cited in the report put the number of existing related companies in Brazil at around 150 to 300. Of those, only about 20 to 25 are seen as either qualified or willing to apply for a license, and the final number of approvals may end up at roughly 10. Some smaller platforms have already ended or restructured their retail businesses as the bar for compliance rises.