Many BTC companies may have to close in Brazil

[rdluffy]

I just saw a post on CoinMarketCap’s X:


https://x.com/CoinMarketCap/status/2099421689662558425

We already know here in Brazil that the Central Bank is tightening the rules for BTC (and crypto) exchanges operating here, but there may be very few companies left due to the high requirements they’re imposing

Basically, only the big players or those with deep pockets will remain
Smaller companies may be acquired by larger ones

The government here has done this to several other sectors as well, increasing tax revenue and stifling an industry until practically nothing remains

Here’s a bit more information in English: https://www.kucoin.com/news/flash/brazil-s-new-capital-rules-force-290-crypto-exchanges-to-exit-market


Since the arrival of the giant Binance, coupled with the new regulations, some companies have already closed down,  there are few options left, and now there will be even fewer
Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

What’s the situation like in your country?

[abhiseshakana]

In my country, crypto positioned as a digital financial asset or commodity that can be traded through officially licensed institutions. The difference are my government approach for tightening minimum capital and legal compliance requirements, more planned unlike Brazil situation, which caused a shock due to its sudden implementation. Beside that if BCB act as crypto regulatory oversight body, in Indonesia authorized party, transfered from Bappebti(Commodity Futures Trading Supervisory Agency under the Ministry of Trade of the Republic of Indonesia) to the Financial Services Authority (it is an independent institution that regulates and supervises activities in the financial services sector in an integrated way) so crypto regulation and supervision not under Indonesia Central Bank.

Differences in the effects of transaction terms and compliance requirements on users between Brazil and Indonesia also has different impact. In Brazil, 24 hour delay rule for big transaction exceeding USD 10,000 make trader loseinstant execution dor international arbitrage. But in my country strict oversight without fund withholding which daily transaction processed instantly however KYC is  a must and to prevent money laundering every transaction must be reported and monitored by Financial Services Authority and The Financial Transaction Reports and Analysis Center (it is an independent institution in Indonesia established to prevent and combat money laundering and the financing of terrorism).

https://notabene.id/world/brazil
https://ojk.go.id/id/regulasi/documents/forms/allitems.aspx?rootfolder=/id/regulasi/documents/pages/padk-nomor-3-tahun-2026-penyelenggaraan-perdagangan-aset-keuangan-digital-termasuk-aset-kripto

[uneng]

Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

Hardly ever there will be a shift to P2P, because it's rare to find people willing to trade BTC directly. Personally, I don't know anyone who I could sell or buy BTC from. I tried once in this forum and nobody was willing to negotiate. Then another alternative would be telegram and facebook groups, but those places are full of scammers and if you have to pay a middleman for every transactions, it ends becoming the same as negotiating inside an exchange.

Brazil is a bureaucratic and corrupt country. You can't rely on authorities or regulators to run your business. I would say that if you can work informally, it's better. And once a niche gets too desired or identified as a gold mine, the friends of the king make sure to give the average citizen a hard time in order to have access to that. Then it's when you have to ask yourself, is investing your efforts and energy on it worthy, after all? Will it pay off?

The answer is, if you don't intend to partner with a big fish, probably no... But by partnering with big fishes will inevitably lead you to end in jail.

[sunsilk]

Having to require an exchange with a $7.2 capital in total is actually needed. That gives them the proof that they'll be able to operate with that money for their users.

And they're not just some exchange that do process their customers trade but can also have that liquidity to provide and to show to their local market.

Isn't it timely that all of these changes have came when Binance entered? there can be some collaboration with them to reduce competition.

[Ambatman]

The more I learn about others view and scrutiny on Bitcoin
The more appreciative of my country's semi indifference to Cryptocurrency
Even with the strict requirement
One that piqued my interest was the fact that any above $10K outside the country would have to undergo risk scrutiny.
It's a shame they plan on placing it under the central bank.
This is one thing I fear about the adoption we getting
Increase in KYC and AML compliance.

[Fortify]

We already know here in Brazil that the Central Bank is tightening the rules for BTC (and crypto) exchanges operating here, but there may be very few companies left due to the high requirements they’re imposing

Basically, only the big players or those with deep pockets will remain
Smaller companies may be acquired by larger ones

The government here has done this to several other sectors as well, increasing tax revenue and stifling an industry until practically nothing remains

Since the arrival of the giant Binance, coupled with the new regulations, some companies have already closed down,  there are few options left, and now there will be even fewer
Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

What’s the situation like in your country?

It's true in many countries and many industries, the first movers who grow the biggest are often the only ones to survive once the government notices then starts to take action. It might actually be for the best if the are tightening up the rules and regulations around it, because having 300 doesn't necessarily mean that they're all high quality. The smaller fish tend to have less security and can often be the ones that are hacked, a few million here or a few million there. Not even sure that the bigger exchanges would bother trying to buy the smaller companies at this point, but rather wait and try to mop up all the displaced customers later on.  The big players are likely the ones that will be more willing to cooperate with the government when it comes to reporting and tax demands. I like P2P more than exchanges, but they certainly come with a set of risks as well and they're constantly under threat of shutting down - localbitcoins, localcoinswap, noones have all fell at different times.

[Emitdama]

Since the arrival of the giant Binance, coupled with the new regulations, some companies have already closed down,  there are few options left, and now there will be even fewer
Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

What’s the situation like in your country?

Isn't it actually going to have more negative results than positive for the government and tax-collecting bodies? Because, if you keep the conditions and taxes reasonable, more business will be able to operate within the country and you will get more funds in taxes, but if you tend to be too strict with the rules and also impose very high taxes, businesses won't easily accept that. After that, those businesses which are established enough and know they can provide services to other nations as well, they are going to move out and run their business elsewhere, mostly in countries where taxes are the lowest and no strict rules. And businesses that can't do that will simply shut down, and that is also not a beneficial thing for the government.

In our country, there are no proper regulatory framework as of yet, and the government must still be busy thinking about what they should do and how they should do it, but as I said above, it is better for governments to be a bit lenient with crypto businesses because they are only making things difficult for themselves because as I explained above, it won't take a lot of time for online businesses to shift from one country to another, especially if the business owners know that their business can do much better in a different country also because of the rules and taxes imposed.

[Die_empty]

Since the arrival of the giant Binance, coupled with the new regulations, some companies have already closed down,  there are few options left, and now there will be even fewer
Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

What’s the situation like in your country?

Forcing all exchanges to have $7.2 million capital requirements will cause many of them to go out of the industry. The government wouldn't have imposed such a flat rate. There should have been levels of capital benchmarks for these exchanges. Those who pay higher capital requirements would be allowed to handle more transactions than those whose capital requirements are lower.

The Brazilian government always introduced a new auditing procedure. I support this one because it would help to keep users' deposits safe.

Exchanges could also decide to merge to enable them to afford the capital requirement.

[ColdLava40]

What’s the situation like in your country?

There was some time in 2025 where the government of my country had some regulations places for centralized exchanges.

Many of them including binance could not keep up with the demands from the government, it turned into a shit show and things went messy.till now biance and many others no longer offer service to people from my country.

Just a few centralized exchanges were able to meet up with by it becoming one of the majorly used cex now. I still see same thing happening in Brazil but might be better since some major exchanges still wants to operate.

[gracreavix]

Eliminating the competitions. That's what most people might say. Regulations are put there by the government to curb online insecurity. But this creates a problem of choice. When only a few people better and leave the people that actually need it to just pick by either bribing or any other means. I don't like when my choice has being taken left aline reduced only to a fraction of the choice you have to make. But at the end, the government is just trying to keep their citizens safe.

[Youngrebel]

Isn't it actually going to have more negative results than positive for the government and tax-collecting bodies? Because, if you keep the conditions and taxes reasonable, more business will be able to operate within the country and you will get more funds in taxes, but if you tend to be too strict with the rules and also impose very high taxes, businesses won't easily accept that. After that, those businesses which are established enough and know they can provide services to other nations as well, they are going to move out and run their business elsewhere, mostly in countries where taxes are the lowest and no strict rules. And businesses that can't do that will simply shut down, and that is also not a beneficial thing for the government.

In our country, there are no proper regulatory framework as of yet, and the government must still be busy thinking about what they should do and how they should do it, but as I said above, it is better for governments to be a bit lenient with crypto businesses because they are only making things difficult for themselves because as I explained above, it won't take a lot of time for online businesses to shift from one country to another, especially if the business owners know that their business can do much better in a different country also because of the rules and taxes imposed.

Governments still actually need taxes and rules to prevent fraud, money laundering and other things most especially in crypto but if the regulations become so complicated that legit business can no longer operate well and make good profit, the government may actually reduce the revenue it is trying to collect and businesses need to know what is allowed, what taxes apply, how it works and what protections or benefit they stand for gain.

[Smartvirus]

I just saw a post on CoinMarketCap’s X:


https://x.com/CoinMarketCap/status/2099421689662558425

We already know here in Brazil that the Central Bank is tightening the rules for BTC (and crypto) exchanges operating here, but there may be very few companies left due to the high requirements they’re imposing

Basically, only the big players or those with deep pockets will remain
Smaller companies may be acquired by larger ones

It’s being one effective means by which the government tries to take control of how Bitcoin is functional within its jurisdiction. Going after the exchanges and various centralized institutions that functions in this space.

I can recall a time when the government of my nation made attempts on tightening their press on Binance and even went as far as removing the local currency from their offers, deactivated its app and more other sanctions on the operation of Binance but, it all got settled at the end. It’s just one of those many steps government take to ensure they remain in control.

[abhiseshakana]

Forcing all exchanges to have $7.2 million capital requirements will cause many of them to go out of the industry. The government wouldn't have imposed such a flat rate. There should have been levels of capital benchmarks for these exchanges. Those who pay higher capital requirements would be allowed to handle more transactions than those whose capital requirements are lower.

The Brazilian government always introduced a new auditing procedure. I support this one because it would help to keep users' deposits safe.

Exchanges could also decide to merge to enable them to afford the capital requirement.

Same regulation in Indonesia, a Physical Crypto Asset Trader (an official institution licensed by the Financial Services Authority) must provide USD 5,7 million capital plus additional regulation that Digital Financial Asset Trading Organizers / crypto exchanges must deposit 70% of fund and hold by an independent custodian bank.

Smooth landing of this regulation in Indonesia due to clear transition phase. Merger become one of solution but the trend in Indonesia are acquisition of small exchanges by giant financial or technology conglomerates (who want to enter the crypto market but are reluctant to take care of licensing from zero) with consideration small exchanger has possess an operational base and basic infrastructure.

Beside that Indonesia has National Crypto Exchange and all must integrate to centralized ecosystem, these make operational burden on small exchange lighter and the risk of operational bankrup can be mitigated. The last indonesia has Single order book simply explanation this rule consolidate all crypto buy and sell order fro various application intoo a single centralized system owned by National Crypto Exchange.

https://www.idnfinancials.com/videos/watch/2775/p2sk-law-requires-crypto-transactions-single-book-exchange
https://murzallawfirm.com/the-overview-of-regulatory-landscape-for-crypto-assets-in-indonesia/

[Sticky Bomb]

Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

Hardly ever there will be a shift to P2P, because it's rare to find people willing to trade BTC directly. Personally, I don't know anyone who I could sell or buy BTC from. I tried once in this forum and nobody was willing to negotiate. Then another alternative would be telegram and facebook groups, but those places are full of scammers and if you have to pay a middleman for every transactions, it ends becoming the same as negotiating inside an exchange.

Physical P2P isn't also safe since it could undermine your security as a person. I tried it about twice buying coins from friends and giving them first, but the attention it drew towards me got me scared and I stopped for my safety.

My country recently approved some local exchanges to function with temporary license to aid crypto transactions within the country and in my country it isn't tied to central bank directly, we've the Securities and Exchanges Commission (SEC) who overseas activities involving digital assets. My country have had their fights with Binance, OKX, Kucoin and others in the past, but it seems they're loosening up now since most exchanges are reopening P2P options for Nigerians.

[Coyster]

I have read about the new capital requirements for virtual asset service providers in Brazil, and even though the requirements are not too stringent, smaller VASP's would be unable to fulfil them. A mandatory reserve of $7.2m is small money for big platforms, they already have far greater than that and this new law has no effect on their operations.

It may look like smaller services are the target here, but it is also be designed to protect customers, in order to ensure that these services have enough funds in reserves to cover liabilities. I believe this law is a positive one for crypto users in Brazil.

[mu_enrico]

Regulation of crypto exchanges isn't something surprising since many countries have already imposed stricter rules for crypto exchanges, as in Indonesia, just as @abhiseshakana said. The idea is to make such businesses regulated, thus lowering the risk associated with bad governance, like embezzlement, money laundering, etc. For sure, it will impact privacy since regulated exchanges mean strict KYC/AML policies.

Most people won't shift to P2P because of the hassle, and it's generally more convenient to use regulated CEXs. For some people who have privacy concerns, well, it's unavoidable to use P2P and other unregulated services. It's just the way the world moves at this point, more regulation.

Here in Indonesia, I don't see any noticeable change even after the market became regulated, except for the taxation. You can expect the tax regulation will follow. I think that's the real reason governments regulate the market.

[rdluffy]

Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

Hardly ever there will be a shift to P2P, because it's rare to find people willing to trade BTC directly. Personally, I don't know anyone who I could sell or buy BTC from. I tried once in this forum and nobody was willing to negotiate. Then another alternative would be telegram and facebook groups, but those places are full of scammers and if you have to pay a middleman for every transactions, it ends becoming the same as negotiating inside an exchange.

Brazil is a bureaucratic and corrupt country. You can't rely on authorities or regulators to run your business. I would say that if you can work informally, it's better. And once a niche gets too desired or identified as a gold mine, the friends of the king make sure to give the average citizen a hard time in order to have access to that. Then it's when you have to ask yourself, is investing your efforts and energy on it worthy, after all? Will it pay off?

The answer is, if you don't intend to partner with a big fish, probably no... But by partnering with big fishes will inevitably lead you to end in jail.

Interestingly, and fortunately, a few P2P alternatives are popping up here in our country
We have some apps and services that connect you to a P2P without requiring any contact at all, including fiat transactions where you can buy or sell crypto without KYC
There's a demand for it around here

And about our country, yes it's corrupt, extreme corrupt 

I have read about the new capital requirements for virtual asset service providers in Brazil, and even though the requirements are not too stringent, smaller VASP's would be unable to fulfil them. A mandatory reserve of $7.2m is small money for big platforms, they already have far greater than that and this new law has no effect on their operations.

It may look like smaller services are the target here, but it is also be designed to protect customers, in order to ensure that these services have enough funds in reserves to cover liabilities. I believe this law is a positive one for crypto users in Brazil.

I'll be honest: here in Brazil, things aren't usually done to protect consumers
Brazil recently legalized online sportsbooks; and casinos, they charge 30 million reais for a 5-year license, plus 12% in taxes
It simply hasn't improved anything for consumers, absolutely nothing 

These measures stifle small businesses and heavily favor those that are already large
As a result, they eliminate any chance of innovative products emerging here, so they go to another, more business friendly country, like Paraguay for example

7.2 million dollars is a very significant amount for Brazil

[Coyster]

I'll be honest: here in Brazil, things aren't usually done to protect consumers

A lot of people also share that same idea, that the government hardly does anything to protect consumers, and i agree that there is truth to it on many occasions.

These measures stifle small businesses and heavily favor those that are already large
As a result, they eliminate any chance of innovative products emerging here, so they go to another, more business friendly country, like Paraguay for example

I totally agree with this and i also hinted at it in my earlier post. Though i think it is still essential for the government to impose mandatory reserve limits for these crypto asset service providers. Let's forget about the intentions of the authorities for a minute here, many of these VASP's could be running their business while being nearly insolvent, so what happens if there is a "bank run"?

7.2 million dollars is a very significant amount for Brazil

Yes, we can agree on this. Maybe a lower limit for small businesses would have been the way to go. It could be a limit that is commensurate with their transaction volume.

[BIT-BENDER]

Well if they can't live with the new Brazilian Crypto-currency capital rules then they need to close up it's as simple as that and there should not be any big deal to that.
I think this would help in the Brazilian Crypto-currency companies regulations, many of these companies should not even be existing the first place and this law is helping flush them out.

[BlackHatCoiner]

The good part is that the October 30 deadline applies to companies, not to your private keys. P2P and self custody never needed a license, and every time a government does this, P2P volume goes up.

It's always the same story: "we're protecting the consumer", and the consumer ends up with 3 options, all charging more fees and all asking for your KYC selfie.