Lemon Exits Brazil Amid Strict Licensing Rules
Lemon is closing its operations in Brazil by October 16, 2026, citing the country's new licensing framework and capital rules. The Argentine crypto app had launched its Lemon Card in Brazil with Pomelo just weeks prior to the shutdown. Under the PSAV framework enforced by Brazil's Central Bank since February 2026, unlicensed firms must meet strict capital thresholds.
Lemon determined that the requirement outweighed its local business size and decided to redirect funds towards Argentina, Peru, and Colombia instead. The company will assist customers with withdrawals before the deadline of October 16, 2026, when accounts fully close.
This is not an isolated incident; several other crypto firms have also retreated from Brazil's market due to the strict regulations. Coinext shut down after missing minimum capital requirements, and Digitra wound down its retail trading operations entirely. Only well-capitalized firms like Binance appear positioned to remain in the Brazilian market.
Lemon will focus on expanding its presence in Argentina, Peru, and Colombia, where it already has a significant user base. Bitcoin purchases on Lemon in Argentina have hit a 20-month high, and both Peru and Colombia offer more favorable regulatory environments for crypto firms.