- Lemon will close Brazilian accounts on October 16 after exiting over licensing costs.
- Brazils PSAV rules require capital ranging from 10.8 million to 37.2 million reais.
- Lemon will redirect resources toward Argentina, Peru, and Colombia after leaving Brazil.
Argentine crypto platform Lemon will shut down its Brazilian operations after determining that new licensing capital requirements are too costly for its local business. The company will end Lemon Card services on September 30 and automatically close Brazilian accounts on October 16.
Lemon Leaves Brazil Ahead of Crypto Licensing Deadline
Lemon said Brazils new virtual-asset service provider rules require a capital commitment it considers disproportionate to its local operations. The company therefore chose to leave the market rather than pursue a license under the current framework.
Brazils PSAV regulatory framework took effect on February 2, 2026, introducing licensing requirements for companies providing virtual-asset services. The first phase of applications has a deadline of October 30.
Capital requirements vary according to the type of crypto activity, ranging from 10.8 million to 37.2 million Brazilian reais. As a result, providers must also account for technology, compliance, reporting, and other operating expenses.
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Lemons Brazilian business has about 15,000 users with remaining balances, according to the company. Meanwhile, it has stopped accepting new deposits in Brazilian reais as it prepares for the closure.
The company entered Brazil in March 2022 and recently launched Lemon Card through payments infrastructure provider Pomelo. However, the Visa card will stop processing transactions on September 30, weeks after its introduction.
Lemon said its decision reflects the economics of obtaining the required license rather than declining demand for cryptocurrency services. It plans to redirect resources to other Latin American markets where it continues operating.
Brazilian Users Face Staggered Account Closures
Brazilian users have until October 16 before their accounts are automatically closed. Lemon said it will contact affected customers individually and assist with withdrawals before the deadline.
The account closure comes two weeks before Brazils first licensing deadline, meaning Lemon will exit before completing the application process. Users should therefore monitor company communications and complete their withdrawals within the announced timeframe.
The company has not publicly detailed every withdrawal procedure or deadline for individual assets. Customers with remaining balances will need to follow the instructions provided directly by Lemon.
Lemons departure also follows changes among other crypto companies operating in Brazil. Coinext has reportedly shut down after failing to meet minimum capital requirements, while Crypto.com is closing its Brazilian real-denominated account channel without leaving the country entirely.
Meanwhile, larger international companies continue investing in Brazil despite the regulatory requirements. Binance has obtained approval, while Ripple is pursuing a local virtual-asset service provider license.
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Lemon plans to concentrate resources on Argentina, Peru, and Colombia. It reports more than one million users in Peru and over 150,000 users in Colombia.
The move highlights how licensing costs can influence regional expansion strategies. For Lemon, the capital commitment required for Brazil outweighed the expected value of maintaining its local operation.