Brazil crypto market could shrink as less than 10% seek licenses

Brazil’s crypto market has entered a regulatory shakeout, with industry estimates indicating that fewer than 10% of companies currently operating in the country are likely to seek Central Bank authorization before an October deadline. Summary Fewer than 10% of crypto companies operating in Brazil are expected to seek central bank authorization, according to industry estimates. Only 20 to 25 firms may apply for authorization, while roughly 10 are expected to ultimately secure a license. Existing crypto service providers have until Oct. 30 to begin the authorization process or face shutting down their operations within 30 days. Capital requirements can range from R$10.8 million to R$37.2 million, alongside governance, security, audit and compliance obligations. Several firms have already closed, consolidated operations or transferred retail customers as the market adjusts to the new rules. Valor Investe reported that people closely following the licensing process estimate Brazil has between 150 and 200 domestic and foreign companies providing virtual asset services, although some industry estimates put the figure closer to 300. Only 20 to 25 are expected to have the capital, structur...