Brazil’s central bank has introduced new rules requiring virtual asset service providers to meet compliance standards covering minimum capital, audits, anti-money laundering controls, and ongoing reporting. The maximum capital threshold reaches 37.2 million reais, or about $7.2 million. Of roughly 300 related firms currently operating in the market, only 20 to 25 may be eligible to apply for authorization, and just 10 are expected to secure a license. Some smaller platforms, including Bitnuvem, NovaDAX, Digitra, and Coinext, have already ended or restructured their retail businesses, though they did not attribute those decisions to the new rules. Firms must apply by Oct. 30. Those that do not apply will be required to wind down operations within 30 days and notify customers. Ripple executive Isabel Longhi said market consolidation is likely as Brazil’s crypto market matures, while warning the rules will limit innovation in the short term.
Brazil’s central bank has issued new rules requiring virtual asset service providers to meet compliance standards on minimum capital, audits, anti-money laundering controls, and ongoing reporting. The highest capital requirement is 37.2 million reais, or about $7.2 million.
Of roughly 300 related firms currently in the market, only 20 to 25 may qualify to apply for authorization, and only 10 are expected to obtain a license.
Some smaller platforms have already ended or restructured their retail businesses, including Bitnuvem, NovaDAX, Digitra, and Coinext. Those platforms did not link their decisions to the new rules.
Firms that cannot meet the requirements will also face ongoing compliance costs, and some business lines may be difficult to sustain. Relevant institutions must apply for authorization by Oct. 30. Those that do not apply will have to cease 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 added that the new rules will restrict innovation in the short term.
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