Far fewer crypto companies than expected applied for an operating license from Brazil's central bank before the application window closed, raising the prospect of a market dominated by larger
Far fewer crypto companies than expected applied for an operating license from Brazil's central bank before the application window closed, raising the prospect of a market dominated by larger players.
Only about 40 companies submitted applications by the October 30 deadline for virtual asset service provider (VASP) licenses, far below earlier expectations that 150 to 200 firms would apply, according to a Bitcoin.com report cited by Bloomingbit. Other trackers put the figure higher. FinanceFeeds, citing BlockNews and Cainvest data reported by SpazioCrypto, said the central bank received between 63 and 68 applications, which is still well short of the industry's expectations.
Applicants may continue operating while the central bank reviews their compliance, while firms that missed the Oct 30 deadline must liquidate their businesses and exit the market within one month. Under the timeline in the original reporting, firms that missed the cut-off have until Nov 29 to shut down their crypto services.
Banking restrictions follow shortly after. Starting November 6, Brazilian banks and payment service providers will no longer be able to support transactions for crypto firms outside the regulatory framework.The central bank pushed the restriction back by a week to compile and publish an official list of firms in transition, covering license applicants and eligible institutions that submitted notifications.
Late entrants are not shut out entirely. Future license applications remain possible, but the central bank's review process can take up to two years.
Industry participants point to cost as the main barrier. Steep capital requirements and compliance costs are the main reasons behind the low number of applicants.Minimum capital runs from roughly R$10.8 million to R$37.2 million, about $2 million to $6.7 million, depending on the license category.
Argentina-based crypto app Lemon has already left the market. Lemon said it would leave Brazil after determining that local licensing capital requirements outweighed its business scale.The company plans to close approximately 15,000 local accounts. It is not alone. Coinext, NovaDAX and Digitra.com also shut down or reduced their Brazilian retail operations.
Larger operators have filed. Applicants include major institutions such as Binance and Itaú.Binance filed through BBrasil, a dedicated local entity structured to meet the central bank's standards.
The framework itself dates back to late 2025. On 10 November 2025, the Central Bank of Brazil issued Resolutions 519, 520, and 521, creating the regulatory framework for virtual asset services.FinanceFeeds said the current group of applicants will define Brazil's licensed crypto landscape well into 2028, and that the November 6 banking restriction will test whether enforcement creates a hard boundary between licensed and unlicensed operators.
Sources
FinanceFeeds: Brazil's Crypto Licensing Deadline Draws Just 40 FirmsCoinInsider: Brazil Crypto Licensing Deadline Passes Ahead of Bank CurbsTokenPost: Lemon Will Exit Brazil and End Lemon Card Service
