Brazilian Crypto Market Shrinkage Looms as Only 10% Seek Authorization
The Brazilian crypto market is undergoing a regulatory shakeout as companies struggle to meet the Central Bank's new authorization requirements. Industry estimates suggest that fewer than 10% of currently operating firms will seek central bank authorization by the October 30 deadline.
Only 20-25 companies are expected to apply for authorization, with roughly 10 ultimately securing a license. Existing crypto service providers must begin the authorization process or face shutting down their operations within 30 days.
The Central Bank's new rules require companies to meet capital requirements ranging from R$10.8 million to R$37.2 million, alongside governance, security, audit, and compliance obligations. Several firms have already closed or consolidated operations due to the market's adjustment to the new regulations.