Brazil Regulator Warns That 30% of Crypto Exchanges Fail New Capital Rules

Brazil’s central bank said roughly 30% of the 120 crypto exchanges that applied to continue operating as virtual asset service providers fall short of the share capital required under its new rules, putting their applications at risk of rejection. The regulator flagged the capital shortfall as it reviews the filings, with non-compliant firms facing possible denial after assessment. The requirement is part of Brazil’s move to bring crypto trading platforms under formal central bank oversight. Watch for the central bank’s decisions on the roughly 36 non-compliant applicants and whether they raise capital, merge or exit the market.