Brazil’s Central Bank has warned that roughly 30% of the 120 cryptocurrency exchanges that filed to become licensed virtual‑asset service providers (VASPs) failed to satisfy the newly imposed share‑capital thresholds. The shortfall could lead the regulator to reject those applications during its review, potentially shrinking the pool of operating exchanges for Brazilian users.

New capital thresholds and filing deadline

The regulator’s resolutions 519 and 520, issued earlier this year, set a tiered capital floor that can reach US$7.2 million for larger platforms. Exchanges were required to submit audited financial statements alongside proof of capital by the Oct. 30 deadline, after which the filing window closed. According to Central Bank inspection director Ailton Aquino, many applicants either omitted the audited statements or simply did not have the requisite capital, prompting concerns about the viability of their operations.

Market impact and industry reactions

Analysts note that the flawed filings may be a tactical move by some firms to delay a banking blockade scheduled for Nov. 6, which will prevent banks from servicing unlicensed entities. João Paulo Oliveira, founder of crypto‑payment service NoxPay, speculated on social media that roughly half of the 120 VASPs could be rejected in the first review round. The stricter regime has already forced several exchanges—Bitnuvem, NovaDAX, Digitra and Coinext—to exit the Brazilian market, reducing options for retail and institutional participants.

What to watch next

The Central Bank has indicated that the review process may take up to two years, during which time non‑approved exchanges cannot operate. Companies that missed the filing deadline have until Nov. 30 to wind down operations. Observers will monitor the regulator’s final decision list, the response of banks to the upcoming blockade, and whether additional exchanges adjust their capital structures to meet the new requirements.