Lemon exits Brazil over crypto licensing costs, closing 15,000 accounts

Argentine crypto app Lemon is exiting Brazil and closing 15,000 local accounts by October 16, 2026, citing disproportionate capital requirements under Brazil's new virtual-asset licensing rules. The regulatory shift is consolidating the market, forcing out smaller players like Coinext and Digitra, while well-capitalized firms like Binance and Ripple continue expanding. Lemon will redirect its resources to grow its operations in Argentina, Peru, and Colombia.

Lemon Brazil market exit

• ▪The Lemon Card, a Visa payment card launched by Lemon and Pomelo, will stop processing transactions in Brazil on September 30, 2026.
• ▪Lemon will close its remaining Brazilian user accounts on October 16, 2026, and has already suspended new deposits in Brazilian reais.
• ▪The Argentine cryptocurrency application Lemon decided to close its Brazilian operations and terminate approximately 15,000 local accounts due to high licensing capital requirements.

Brazil crypto licensing requirements

• ▪Brazil's regulatory framework for virtual-asset service providers took effect on February 2, 2026, with the first-stage licensing deadline set for October 30, 2026.
• ▪Lemon characterized Brazil's licensing capital requirements as disproportionate to the size of Lemon's local business, stating the rules expelled players wanting to invest and innovate
• ▪Under Brazil's virtual-asset framework, providers operating without regulatory approval after October 30, 2026, face restrictions on serving the Brazilian market.

Crypto provider market consolidation

• ▪Binance obtained regulatory approval in Brazil and relaunched its Brazilian crypto card through Mastercard following a two-year absence.
• ▪Crypto.com plans to close its Brazilian accounts denominated in reais on October 25, 2026, while retaining its local Brazilian entity.
• ▪Coinbase expanded access to USD Coin lending products in Brazil through Morpho to offer eligible users exposure to onchain lending.
• ▪The cryptocurrency platform Coinext shut down its operations after failing to meet Brazil's minimum regulatory capital threshold.
• ▪The cryptocurrency exchange Digitra ended its retail trading service in Brazil amid the country's new virtual-asset licensing regime.
• ▪Ripple is pursuing a Brazilian virtual-asset service provider licence to expand the use of its RLUSD stablecoin across Latin America.

Lemon Latin America expansion

• ▪Lemon plans to devote additional resources to Colombia, where the company reports having more than 150,000 users.
• ▪The cryptocurrency exchange Bitget obtained virtual-asset service provider registration in Argentina to serve customers in Lemon's largest market.
• ▪Lemon plans to redirect Lemon's capital to operations in Argentina, Peru, and Colombia, where it believes licensing and operating costs provide a stronger basis for expansion
• ▪Lemon operates in Peru with more than 1 million users under a licence from the country's banking and insurance supervisor, the SBS.

Brazil regulatory policy developments

• ▪The United States Strategic Bitcoin Reserve, established in March 2025, capitalized its reserve with Bitcoin forfeited through criminal or civil proceedings.
• ▪Brazilian lawmakers are considering a proposal for a national Bitcoin reserve that could eventually hold up to 1 million BTC.