Brazilian central bank releases new rules for cryptocurrency exchanges, with around 290 institutions facing exit from the market

The Central Bank of Brazil requires virtual asset service providers to meet compliance requirements such as capital, auditing, anti money laundering, and ongoing reporting, with a maximum capital requirement of 7.2 million US dollars. Currently, only 20 to 25 out of approximately 300 institutions have the conditions to apply for authorization, and it is expected that only 10 will obtain a license. Platforms such as Bitnutem, NovaDAX, Digitra, and Coinext have either terminated or restructured their retail businesses. Relevant institutions must apply for authorization before October 30th, and those who do not apply will end their operations within 30 days. Isabel Longhi, Head of Public and Regulatory Policy at Ripple Latin America, stated that market consolidation will occur as the Brazilian cryptocurrency market matures, but the new regulations will limit innovation in the short term. (Source: Bitcoin.com News)