Analysts: Brazil's new central bank rules could force 290 crypto exchanges out of the market

According to Arzdigital, strict new rules from Brazil's central bank could force up to 290 of the roughly 300 virtual asset service providers currently active in the country out of the market. Under the new requirements, crypto firms must hold capital of up to 37.2 million reais, about $7.2 million, depending on their classification, a threshold beyond the reach of small and early-stage platforms. Analysts estimate only 10 to 25 companies have the financial structure to apply for a license, with roughly 10 expected to ultimately obtain one; firms have until October 30, 2026, to apply, and those that do not will have 30 days to wind down operations. Isabel Longhi, Ripple's Latin America public policy director, told Brazil's Valor Investe that the regulation aims to separate legitimate players from bad actors, but warned that removing small firms based solely on size could temporarily curb innovation in Brazil.