New Capital Rules in Brazil Take Effect, Around 290 Crypto Exchanges Face Market Exit, Capital Requirement Up to $7.2 Million

Odaily Planet Daily News: The Central Bank of Brazil's new regulations require virtual asset service providers to meet compliance requirements such as capital reserves, auditing, anti-money laundering measures, and continuous reporting. The capital requirement is set at a maximum of 37.2 million Brazilian reals, approximately $7.2 million. Among the roughly 300 related institutions, only 20 to 25 are likely to meet the conditions for applying for authorization, with an estimated 10 expected to obtain licenses. Some smaller platforms, including Bitnuvem, NovaDAX, Digitra, and Coinext, have already ceased or restructured their retail operations, though these platforms have not attributed their decisions to the new regulations. Institutions failing to meet the requirements will also face ongoing compliance costs, making it difficult for some businesses to sustain operations. Relevant institutions must apply for authorization by October 30, and those failing to do so will cease operations within 30 days and notify their customers. Isabel Longhi, Head of Public and Regulatory Policy for Ripple Latin America, stated that market consolidation is expected as Brazil's crypto market matures, but the new regulations will limit innovation in the short term. (Bitcoin.com News)