Around 40 of an expected 150 to 200 crypto firms applied by Brazil’s October 30 deadline to keep operating as virtual asset service providers, according to local reports. Filing an application is not approval: applicants may operate while the central bank reviews them, while firms that did not apply have a month from the deadline to wind down.
Starting November 6, banks and payment providers will not be able to process transactions for providers outside the regulatory regime, cutting off their access to fiat payment channels. Lawyer Tiago Severo said capital requirements and the cost of daily custody reports and other compliance rules helped explain why fewer firms applied.
