Brazil's tougher capital rules set to drive about 290 crypto exchanges out of the market

Brazil's Central Bank has rolled out new rules for virtual asset service providers, tightening compliance requirements around capital adequacy, audits, anti-money laundering controls, and ongoing reporting. Under the framework, required capital can rise to as much as 37.2 million Brazilian reais (about $7.2 million). With roughly 300 firms currently operating in the sector, market participants estimate only 20–25 will be able to meet the threshold to seek authorization, and as few as 10 may ultimately secure licenses. Smaller platforms have already halted or reshaped parts of their retail businesses, including Bitnuvem, NovaDAX, Digitra, and Coinext, though none has publicly linked the moves directly to the new rules. Firms that fall short of the standards would still face ongoing compliance expenses, which could make some business models hard to sustain. Providers must submit authorization applications by October 30. Those that do not apply must stop operating within 30 days and inform customers. Isabel Longhi, Ripple's head of public and regulatory policy for Latin America, said consolidation is likely as Brazil's crypto market matures, while warning the tighter regime may temporarily curb innovation. (Bitcoin.com News)