Brazil Central Bank deadline triggers crypto market consolidation

The Central Bank of Brazil (BCB) has concluded the deadline for cryptocurrency service providers to apply for operating licenses. This regulatory milestone, driven by Resolutions 519, 520, and 521, is expected to significantly consolidate the market. Industry estimates suggest the number of active firms could drop from approximately 200 to around 50, representing a 75% reduction.

The BCB has released a list of 120 entities currently under review, including 46 applicants for brokerage licenses, 73 for intermediary licenses, and one for a custodian license. Major global exchanges such as Binance, Coinbase, OKX, Bybit, and Kraken, along with prominent Brazilian firms like Mercado Bitcoin and Foxbit, have submitted applications. Large financial institutions including Itaú, Bradesco, Nubank, and Santander are also included in the list of applicants.

Companies that have applied may continue their operations while the BCB conducts its analysis. The review process is expected to be lengthy, with the Central Bank potentially taking up to 360 days in the first phase and 720 days in the second phase. Conversely, some platforms, such as Bitso, NovaDAX, and Uphold, are reportedly ceasing operations for Brazilian clients.