Brazil’s cryptocurrency industry has seen far fewer companies enter the country’s new licensing process than initially expected, with roughly 40 institutions identified ahead of the October 30 deadline.
Summary
- Only around 40 institutions were identified in Brazil’s crypto licensing process before the October 30 deadline, well below earlier industry expectations of 150 to 200 applicants.
- Smaller crypto platforms have struggled with Brazil’s new capital, custody, auditing and compliance requirements, prompting some operators to withdraw from the market.
- Companies that missed the licensing deadline have 30 days to wind down operations, while banks and payment institutions face restrictions on dealing with unauthorized providers from November 6.
- Brazil recorded R$505.5 billion in reported crypto transactions during 2025, with dollar pegged stablecoins accounting for approximately two thirds of the total volume.
- The next phase of regulation is expected to focus on stablecoin issuance and real world asset tokenization, while licensed providers could allow smaller banks to offer crypto services without operating their own exchanges.
According to an assessment cited by Brazilian law firm Panucci, Severo e Nebias Advogados (PSNA), the figure was well below earlier market expectations of 150 to 200 companies seeking authorization from the Central Bank of Brazil.
As of October 29, publicly available information identified approximately 40 institutions with applications, notifications or other activity related to the authorization process. They included international exchanges, banks, payment fintechs and Brazilian stock exchange operator B3.
Companies that missed the deadline have 30 days to wind down their operations, while financial institutions will face additional restrictions on dealing with unauthorized crypto providers beginning November 6.
Why are fewer crypto firms applying for licenses in Brazil?
For smaller cryptocurrency businesses, meeting Brazil’s new compliance requirements has become a major obstacle, according to Tiago Severo Gomes, a partner responsible for crypto and virtual assets at PSNA.
Gomes said minimum capital requirements were only part of the problem, as companies must maintain extensive internal controls, audited financial statements and anti-money laundering programs.
Applicants face requirements involving customer asset custody, proof of reserves and financial reporting, all of which demand substantial operational resources.
He explained that many smaller platforms concluded they could not maintain the systems and procedures necessary to operate under central bank supervision.
As crypto.news previously reported, industry estimates in September suggested that only 20 to 25 companies might apply for authorization, with approximately 10 expected to eventually secure licenses.
Capital requirements range from R10.8milliontoR37.2 million, depending on the services offered and the company’s risk profile.
Several companies have already withdrawn from the market. Argentine cryptocurrency platform Lemon exited Brazil after deciding that the capital required to maintain its local business was too expensive.
The company announced plans to close approximately 15,000 Brazilian accounts and redirect resources toward Argentina, Peru and Colombia.
Other exchanges, including Coinext, NovaDAX and Digitra.com, have closed or reduced their Brazilian retail operations.
What happens to crypto companies after the licensing deadline?
Brazil’s regulatory framework requires existing virtual asset service providers to seek authorization from the central bank, while new entrants must receive approval before beginning regulated operations.
Companies that submitted applications can continue through the authorization process, which involves assessments of their ownership structures, business plans, financial resources and operational controls.
Gomes said the central bank could take up to two years to decide applications from new market entrants.
Beginning November 6, banks and payment institutions will generally be prohibited from conducting virtual asset transactions with providers that lack authorization or an applicable regulatory exemption.
The requirements have already prompted international exchanges to reorganize their local operations.
For example, Binance submitted its application through BBrasil, a Brazilian entity established to handle cryptocurrency services under the new framework.
The exchange separated those operations from its local brokerage business, which handles traditional currencies, payments and other financial products.
Brazilian banks are following a different procedure because institutions already authorized by the central bank can register eligible cryptocurrency activities through regulatory notifications.
On October 27, Itaú formalized its crypto services, covering trading and custody activities under the new rules.
The bank already offers customers access to 15 digital assets, including Bitcoin, Ethereum and USDC.
Stablecoins remain central to Brazil’s crypto market
The relatively small number of licensing applicants contrasts with the volume of cryptocurrency transactions recorded across Brazil.
According to figures cited in the PSNA assessment, Brazilian taxpayers reported R$505.5 billion in cryptocurrency transactions during 2025, representing a 21.5% increase from the previous year.
Dollar-pegged stablecoins accounted for approximately two-thirds of that volume, with their use extending into international transfers and payment services.
Brazilian banks have expanded crypto access in recent years, with institutions including Itaú, Bradesco, Santander, Banco do Brasil and Nubank offering digital asset services.
Nubank has offered access to 28 cryptocurrencies, while Itaú provides 15 assets through its investment platform.
Gomes expects stablecoin issuance and the tokenization of real-world assets to become important subjects in the next phase of regulatory discussions.
He identified gold, real estate, vehicles and receivables as potential areas for tokenization, alongside growing interest in stablecoins for international payments and foreign trade.
According to the lawyer, several virtual asset activities still lack dedicated regulatory treatment in Brazil, leaving questions about how certain products and services should be supervised.
Could smaller banks offer crypto without operating exchanges?
Brazil’s licensing framework could encourage banks, cooperatives and retailers to provide cryptocurrency services through partnerships with authorized companies, according to Gomes.
Under such arrangements, financial institutions could offer customers access to digital assets without developing their own exchanges or custody infrastructure.
However, the lawyer said the legal responsibilities of each participant would need to be clearly established, particularly when regulated activities are outsourced.
PSNA handled eight virtual asset mandates during 2026, including four central bank authorization applications, three organized exits by Brazilian platforms and the foreign exchange classification of a Brazilian real stablecoin.
Its clients included international cryptocurrency exchanges and a cross-border payments fintech using stablecoins.
Some assignments required exchanges to revise their Brazilian operating structures or migrate customers to local entities, while others involved closing operations and preserving customer balances.
Gomes said practical decisions about licensing categories, company directors, custody arrangements and corporate documentation frequently delayed applications.
The firm participated in central bank public consultations that contributed to the development of Brazil’s virtual asset regulatory framework.
