Lemon Exits Brazil as Central Bank Capital Requirements Prove Too Heavy

Lemon, an Argentine crypto app, has shut down its operations in Brazil due to what it calls 'disproportionate' capital requirements imposed by the Central Bank of Brazil. The company will close all local accounts on October 16, 2026, and has already blocked new BRL deposits. Approximately 15,000 Brazilian users still hold balances, which Lemon will assist with withdrawing before the deadline.

The decision follows Brazil's adoption of the PSAV framework in February 2026, which sets a minimum capital requirement for virtual asset providers. The first-phase license filing deadline is October 30, and unlicensed providers face a hard block after that date. Lemon chose not to fund a license, opting instead to redirect its capital.

This move is part of a wider shakeout in the Brazilian crypto market, with other companies such as Coinext and Digitra winding down or shutting down operations due to similar challenges. However, larger players like Binance have secured regulatory approval and continue to expand their services in Brazil.