Odaily Planet Daily reports that Brazil’s Central Bank’s new regulations require virtual asset service providers to meet compliance requirements including capital adequacy, auditing, anti-money laundering, and ongoing reporting, with capital requirements reaching up to 37.2 million Brazilian reais, approximately $7.2 million. Of the roughly 300 relevant institutions currently operating, only 20 to 25 may meet the criteria to apply for authorization, and it is estimated that only 10 will receive licenses.
Some smaller platforms have ceased or restructured their retail operations, including Bitnuvem, NovaDAX, Digitra, and Coinext, but these platforms have not attributed their decisions to the new regulations. Institutions that fail to meet the requirements will also face ongoing compliance costs, making some business operations difficult to sustain.
Relevant institutions must apply for authorization by October 30; those that do not apply will cease operations within 30 days and notify their customers. Isabel Longhi, Head of Public and Regulatory Policy for Ripple in Latin America, said market consolidation is expected as Brazil’s crypto market matures, but the new regulations will temporarily limit innovation. (Bitcoin.com News)