Brazil’s new crypto framework is consolidating the market as exchanges face ongoing reporting, compliance-plan and capital requirements of up to $7.2 million. The Central Bank of Brazil (Brazil’s monetary authority) received five applications from virtual asset service providers (VASPs) before the Oct. 30 deadline; one was rejected and four remain under review. Analysts estimate that only 10 of about 300 companies have the structure needed to comply. Lemon, an Argentina-based exchange, said on Sept. 17 that it would wind down its Brazilian operations because licensing would tie up a disproportionate amount of capital for its local business. Firms applying after Oct. 30 must wait for authorization before launching, with permits potentially taking up to three years. Existing exchanges may continue operating while applications are reviewed, and industry associations are seeking more time to implement the requirements.