Lemon exits Brazil over crypto licensing costs

Lemon announced it will shut down its Brazilian operations, close roughly 15,000 local accounts and stop new BRL deposits. The company cited Brazil’s new virtual‑asset licensing capital requirements as disproportionate to its size and revenue in the market.

Timeline of the exit

• New BRL deposits suspended – already in effect.
• Lemon Card Visa payments cease on September 30.
• All Brazilian accounts will be closed on October 16, 2026, with withdrawal assistance offered to each user.
• Brazil’s first virtual‑asset licensing deadline is October 30.

Regulatory backdrop

Brazil’s framework for virtual‑asset service providers (PSAVs) took effect on February 2. Companies must file for a licence by October 30 or face restrictions on serving the market. Compliance would require additional capital commitments to the local entity.

Strategic reallocation

Lemon said it will redirect the capital earmarked for Brazil to its operations in Argentina, Peru and Colombia, where it already holds larger user bases and existing licences. The firm highlighted recent growth in Bitcoin purchases in Argentina and a user base of over 1 million in Peru and 150 000 in Colombia.

Industry context

Other crypto firms are making varied decisions under the same regime. Coinext shut down, Digitra ended retail trading, Crypto.com will close BRL accounts on October 25, while larger players such as Binance and Ripple are pursuing licences and expanding services. Binance also relaunched a Mastercard‑based crypto card in Brazil.

Next steps for users

Customers with remaining balances must withdraw funds before October 16. Lemon will contact each affected user individually to facilitate the process.