Brazil's crypto market faces consolidation as new licensing requirements take effect

The Central Bank of Brazil has imposed strict capital and compliance requirements on Virtual Asset Service Providers (VASPs), effective February 2. Out of nearly 300 platforms, only about 20 to 25 are expected to meet the criteria for a license, which requires capital of up to 37.2 million Brazilian reais (approximately $7.2 million). Platforms like Bitnuvem, NovaDAX, Digitra, and Coinext have already restructured or ceased services. The new rules mandate formal governance, anti-money laundering protocols, and asset segregation, with applications due by October 30.