Brazil's Central Bank Sets Minimum Capital Requirement for Virtual Asset Licenses at Approximately $2.11 Million, Expected Only 10 Approvals

The minimum capital requirement set by the Central Bank of Brazil for virtual asset service providers (VASPs) is approximately 10.8 million to 37.2 million reais (about $2.11 million to $7.2 million), significantly higher than the 1 million to 3 million reais (about $195,000 to $586,000) proposed in the consultation draft. The new regulations also require enhanced governance, internal controls, anti-money laundering measures, auditing, and ongoing reporting. Existing operators must submit their first-phase authorization applications by October 30, and those who do not apply must cease operations within 30 days and notify their clients. Industry estimates suggest there are currently about 150 to 300 related companies, with around 20 to 25 meeting the application criteria or expressing interest, and it is ultimately expected that only about 10 will obtain licenses. Some smaller platforms have already ended or restructured their retail operations.

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