Lemon has decided to close its Brazilian operations and terminate approximately 15,000 local accounts after finding the country's new crypto licensing capital requirements too costly for its business. According to reports from CoinDesk and Phemex News, the Argentine crypto app will close Brazilian accounts on October 16, 2026, and assist users with withdrawals before the closure. New deposits in Brazilian reais have already been suspended, while Lemon Card payments will end on September 30, 2026. The company stated that obtaining the required crypto business license would necessitate locking up capital disproportionate to its local business scale, prompting the company to withdraw rather than finance a license under the country's new virtual-asset rules.
Brazil's framework for virtual-asset service providers (PSAVs) took effect on February 2, 2026, with companies covered by the rules facing an October 30 deadline for the first stage of licensing. As reported by CoinDesk and Phemex News, Lemon described Brazil's new capital requirements as "disproportionate" to the size of its local business, prompting the company to withdraw rather than finance a license under the country's new virtual-asset rules. The exit highlights the growing compliance burden for foreign crypto firms operating in Brazil's increasingly regulated digital asset market, with the company choosing to redirect that money to its operations elsewhere in Latin America, citing the cost of meeting Brazil's licensing standards compared with the size of its customer base and revenue in the country.
About 15,000 users still hold balances through Lemon's Brazilian operation, with the company planning to contact each customer and provide withdrawal assistance before closing the remaining accounts on October 16, 2026. According to CoinDesk and Phemex News, users who leave balances on the platform face the October 16 account deadline, two weeks before the first-stage filing date for crypto providers seeking to remain in the market. The closure affects Lemon Card, a Visa payment card introduced with payments infrastructure provider Pomelo only weeks before the closure decision.
Lemon will redirect resources toward Argentina, Peru and Colombia following the Brazilian closure. As reported by CoinDesk and Phemex News, Argentina will receive part of the capital released by the Brazilian closure, with Lemon describing the country's regulatory system as providing "clear rules and a security environment." The company reports more than 1 million users in Peru and operates with a license 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.
Lemon is not the only crypto company changing its Brazilian business under the licensing regime, with Coinext shutting down after failing to meet the minimum capital threshold and Digitra ending its retail trading service. According to CoinDesk and Phemex News, Crypto.com is retaining its Brazilian entity but plans to close accounts denominated in reais on October 25, 2026. Companies with more capital or deeper local operations are proceeding with their Brazilian expansion plans, with Binance obtaining regulatory approval and Ripple pursuing a Brazilian virtual-asset service provider license. The exit underscores the growing compliance challenges facing foreign crypto firms in Brazil's increasingly regulated digital asset market.
