Brazil central bank says 30% of crypto exchanges miss new capital rules

About 30% of exchanges that applied for virtual asset service provider registration to keep operating in Brazil failed to meet the central bank’s new capital requirements, Bitcoin.com reported. Brazil’s central bank requires as much as $7.2 million in capital depending on a virtual asset service provider’s business classification. The deadline for registration applications was Oct. 30, and the central bank disclosed a total of 120 applicant companies. Authorities also said many firms failed to submit externally audited financial statements required under the rules. Several companies, including Bitnuvem, NovaDAX, Digitra and Coinext, had previously decided to exit the Brazilian market after failing to respond to the new regulations. João Paulo Oliveira, founder of crypto payments company NoxPay, said comments by central bank officials suggest about half of the 120 applicants could fail the first round of screening.