Brazil Central Bank Sets Higher Capital Requirements for VASPs

Brazil's central bank has finalized rules for virtual asset service providers, setting minimum capital requirements based on business and risk at about 10.8 million to 37.2 million reais. The range is far above the 1 million to 3 million reais proposed in the draft rule and adds governance, internal controls, anti-money laundering, audit, and ongoing reporting requirements. According to Foresight News, institutions that have been operating for two months must submit their first-stage authorization applications by October 30, while those that do not apply must shut down within 30 days and notify customers. Industry estimates put the number of existing related companies at about 150 to 300, with only about 20 to 25 expected to qualify or be willing to apply. In the end, only about 10 may receive licenses. Some smaller platforms have already ended or restructured their retail businesses.