Lemon Exits Brazil Amid High Licensing Costs for Crypto Operations

Argentine crypto platform Lemon is shutting down its Brazilian operations due to high licensing costs. The company will close its Brazilian accounts on October 16, after determining that the capital requirements for a virtual-asset service provider license in Brazil are too costly for its local business.

The new PSAV regulatory framework introduced by Brazil requires companies providing virtual-asset services to commit a significant amount of capital, ranging from 10.8 million to 37.2 million Brazilian reais. This includes technology, compliance, reporting, and other operating expenses.

Lemon has about 15,000 users in Brazil with remaining balances, and the company will contact affected customers individually to assist with withdrawals before the deadline. The account closure comes two weeks before Brazil's first licensing deadline, meaning Lemon will exit before completing the application process.