Lemon Exits Brazil Amid Licensing Costs Concerns

Argentine crypto platform Lemon has decided to exit Brazil due to high licensing costs. The company announced that it will close its Brazilian accounts on October 16, following a decision to leave the market rather than pursue a license under the current framework.

Brazil's PSAV regulatory framework took effect in February and introduced licensing requirements for companies providing virtual-asset services. Capital requirements vary depending on the type of crypto activity, ranging from 10.8 million to 37.2 million Brazilian reais.

Lemon entered Brazil in March 2022 and recently launched Lemon Card through payments infrastructure provider Pomelo. However, the Visa card will stop processing transactions on September 30.