Lemon has decided to close its Brazilian operations and terminate about 15,000 local accounts after finding the country’s new crypto licensing capital requirements too costly for its business. Summary Lemon will close Brazilian accounts on Oct. 16 and assist users with withdrawals. BRL deposits have stopped, while Lemon Card payments will end on Sep. 30. Brazil’s first virtual-asset licensing deadline falls on Oct. 30. Lemon will redirect resources toward Argentina, Peru and Colombia. Lemon said Brazil’s new capital requirements were “disproportionate” to the size of its local business, prompting the Argentine crypto app to withdraw rather than finance a licence under the country’s new virtual-asset rules. About 15,000 users still hold balances through Lemon’s Brazilian operation. The company plans to contact each customer and provide withdrawal assistance before closing the remaining accounts on Oct. 16, 2026. New deposits in Brazilian reais have already been suspended. Lemon Card, a Visa payment card introduced with payments infrastructure provider Pomelo only weeks before the closure decision, will stop processing transactions on Sep. 30. Lemon exits Brazil before the licensing deadline Brazil’s framework for virtual-asset service providers, locally known as PSAVs, took effect on Feb. 2. Companies covered by the rules face an Oct. 30 deadline for the first stage of the licensing process. Under the framework described by Lemon, providers that continue operating without regulatory approval after the deadline face restrictions on serving the Brazilian market. Compliance would require the company to commit more capital to its local entity. Lemon chose to redirect that money to its operations elsewhere in Latin America. The company attributed the decision to the cost of meeting Brazil’s licensing standards compared with the size of its customer base and revenue in the country. “Brazil’s requirements ended up expelling players that wanted to invest, innovate, and widen the service offer,” Lemon said. The company’s statement frames the closure as a regulatory and financial decision rather than a response to falling demand for cryptocurrency services. No figures were provided for the amount of customer assets held in the Brazilian accounts or the capital that Lemon would have needed to secure a licence. Customer withdrawals are now the immediate priority. Users who leave balances on the platform face the Oct. 16 account deadline, two weeks before the first-stage filing date for crypto providers seeking to remain in the market. Brazil’s capital rules divide local crypto providers Lemon is not the only crypto company changing its Brazilian business under the licensing regime. Coinext shut down after failing to meet the minimum capital threshold, while Digitra ended its retail trading service. Crypto.com has taken a narrower approach. The exchange is retaining its Brazilian entity but plans to close accounts denominated in reais on Oct. 25. Companies with more capital or deeper local operations are proceeding with their Brazilian expansion plans. Binance has obtained regulatory approval in the country, while Ripple is pursuing a Brazilian virtual-asset service provider licence as it expands the use of its RLUSD stablecoin across Latin America. Coinbase has also expanded access to USDC lending products in Brazil through Morpho. The service gives eligible users exposure to onchain lending, placing the US exchange among the international companies continuing to invest in Brazil despite the higher regulatory costs. Card products show the same divide. Lemon is withdrawing its Visa card shortly after launch, while Binance has relaunched its Brazilian crypto card through Mastercard following a two-year absence. The contrasting decisions leave companies to weigh the revenue available from Brazilian users against the capital, compliance and operating costs attached to the new system. Lemon’s 15,000 accounts were not enough to justify that investment, according to the company’s explanation. For US crypto companies, Brazil’s approach presents a separate entry cost rather than a direct change to their domestic obligations. American exchanges entering the country must meet Brazilian licensing conditions through their local operations while continuing to follow applicable US federal and state requirements at home. Lemon redirects capital across Latin America Argentina will receive part of the capital released by the Brazilian closure. Lemon described the country’s regulatory system as providing “clear rules and a security environment,” contrasting it with the economics of operating under Brazil’s framework. Bitcoin purchases through Lemon in Argentina recently reached a 20-month high, according to the company. Lemon cited the increase as evidence of stronger growth in its home market, although it did not disclose the volume or value of the purchases. Peru is another priority. Lemon reports more than 1 million users there and operates with a licence from the country’s banking and insurance supervisor, the SBS. In Colombia, where Lemon says it has more than 150,000 users, the company plans to devote additional resources to its existing operation. The redistribution covers three markets where Lemon believes its current licences, customer numbers and operating costs provide a stronger basis for expansion. Other international exchanges have also continued pursuing Latin American markets outside Brazil. Bitget obtained PSAV registration in Argentina, giving the exchange a regulated route to serve customers in Lemon’s largest market. Lemon described its regional plan as a reallocation rather than a general retreat from Latin America. The company will close one national operation while retaining businesses in Argentina, Peru and Colombia. Brazil continues attracting larger crypto companies Brazil remains one of Latin America’s most active cryptocurrency markets despite the departure of smaller providers. Local lawmakers are considering a proposal for a national Bitcoin reserve that could eventually hold as much as 1 million BTC. The proposal remains separate from the central bank’s licensing system and has not created a purchase commitment. Its progress through Congress nevertheless shows that Brazilian policymakers are considering state-level exposure to Bitcoin while financial regulators impose higher requirements on companies serving retail customers. Brazil’s model also differs from the US Strategic Bitcoin Reserve established in March 2025. The White House framework capitalized the US reserve with Bitcoin forfeited through criminal or civil proceedings and allowed officials to examine budget-neutral acquisition methods. Meanwhile, Lemon’s remaining Brazilian customers have until Oct. 16 to remove funds from the platform, while cardholders will lose access to Lemon Card payments after Sep. 30.
