Brazil's Central Bank Sees Low Interest in Crypto Licenses

Only five companies have so far requested authorization from Brazil's central bank to operate as providers of virtual assets (PSAVs) in the country. Four of these applications are still under review, while one has already been rejected.

The low number of requests is surprising given that the deadline for obtaining a license under the new regulatory regime is just over a month away. The rules came into effect on February 2 and allow companies that were already operating in the sector to request authorization until October 30 and continue trading while their application is being processed.

The rejected application was due to issues with documentation and compliance with the conditions required for participation in the transition regime. According to a report by Valor, the company failed to adequately prove that it had been operating before the rules came into effect and also did not meet the minimum capital requirement.

After October 30, new entrants will have to go through a different process, which can take up to three years, according to the bank. However, there is still some uncertainty around the number of companies that plan to remain in the market. Some are still completing audits and making internal adjustments before submitting their applications.