Key facts
- Exchanges must apply for authorization by Friday to continue operating in Brazil.
- Non-compliant exchanges must cease services within 30 days of the deadline.
- New rules require verification of crypto transfer origins and destinations.
- Minimum capital requirements range from $2 million to $7 million, depending on services offered.
Cryptocurrency exchanges in Brazil are facing a critical deadline on Friday to apply for operating licenses under a new regulatory framework, with many encountering significant compliance hurdles and unresolved questions. The framework, established in November 2025 and overseen by the Banco Central do Brasil (BCB), imposes stringent requirements on virtual asset service providers. Exchanges that miss the deadline must cease operations within 30 days, and from November 6, banks and payment institutions will be restricted from transacting with unauthorized providers. Compliance costs, including high capital requirements and complex audits, are particularly challenging for smaller exchanges, potentially leading to market concentration. Questions remain regarding the identification of self-custodial wallets, transaction reporting thresholds, and the handling of customer assets for non-compliant firms.