Key facts
- Lemon, an Argentine crypto app, is ceasing all operations in Brazil.
- The company cited "disproportionate" capital requirements for virtual asset licenses from Brazil's Central Bank.
- Lemon's Visa card product, launched with Pomelo, will stop processing on September 30.
- New BRL deposits are already blocked, and accounts will close on October 16, 2026.
- Approximately 15,000 Brazilian users hold balances that Lemon will assist with withdrawing.
- Brazil's virtual-asset licensing framework, PSAV, took effect on February 2, 2026.
Lemon, an Argentine cryptocurrency app, is ceasing all operations in Brazil due to what it describes as "disproportionate" capital requirements for virtual asset licenses set by the Central Bank of Brazil. The company announced that new BRL deposits are already blocked, and its Visa card product, launched with Pomelo, will stop processing transactions on September 30. All local operations are scheduled to close on October 16, 2026, with Lemon stating it will assist its approximately 15,000 affected Brazilian users with withdrawals.
The decision follows Brazil's new virtual-asset provider (PSAV) framework, which went live on February 2, 2026, with a first-phase license filing deadline of October 30. The tightening regulations mean unlicensed providers face a hard block after this date. Lemon opted to redirect its capital rather than fund a license.
Lemon's exit is part of a broader market consolidation in Brazil. Other platforms like Coinext have shut down due to missed capital requirements, and Digitra has wound down its retail trading operations. Crypto.com is maintaining its Brazilian entity but will close BRL accounts on October 25. This trend indicates that only well-capitalized companies are able to meet the new regulatory standards.
In contrast, larger players like Binance have secured regulatory approval and relaunched their crypto card, while Coinbase has expanded its USDC-earn products. Lemon is reallocating its resources to Argentina, Peru, and Colombia, where it cites clearer regulatory environments and growth potential. Bitcoin purchases on Lemon in Argentina have reportedly reached a 20-month high. Bitget has also registered for a PSAV in Argentina, signaling continued interest in the Latin American market from well-funded firms choosing markets with favorable license economics.