Brazil crypto licensing draws just 40 firms as deadline passes

Brazil’s cryptocurrency industry has seen far fewer companies enter the country’s new licensing process than initially expected, with roughly 40 institutions identified ahead of the October 30 deadline. Summary Only around 40 institutions were identified in Brazil’s crypto licensing process before the October 30 deadline, well below earlier industry expectations of 150 to 200 applicants. Smaller crypto platforms have struggled with Brazil’s new capital, custody, auditing and compliance requirements, prompting some operators to withdraw from the market. Companies that missed the licensing deadline have 30 days to wind down operations, while banks and payment institutions face restrictions on dealing with unauthorized providers from November 6. Brazil recorded R$505.5 billion in reported crypto transactions during 2025, with dollar pegged stablecoins accounting for approximately two thirds of the total volume. The next phase of regulation is expected to focus on stablecoin issuance and real world asset tokenization, while licensed providers could allow smaller banks to offer crypto services without operating their own exchanges. According to an assessment cited by Brazilian law firm ...