Brazilian crypto exchange Mercado Bitcoin filed a license request with the Central Bank on Tuesday, October 27, to operate as a regulated virtual asset service provider. The company had until October 30 to submit the request under Brazil's new crypto rules. Mercado Bitcoin absorbed 850,000 users from Bity earlier this year.
Regulatory filing deadline
Existing crypto companies must request authorization by Friday, October 30, to continue operating in the country. Companies that do not receive approval may be treated as irregular by Brazilian authorities. Mercado Bitcoin's filing starts the review process, but it does not guarantee a license.
Company background
Mercado Bitcoin was founded in 2013 and already holds a payment institution license. The company acquired Banco Mercantil's brokerage at the start of the year. It also absorbed the client bases of Bitso and Bity during the year.
What authorization involves
The new rules require capital, governance, anti-money laundering controls, and segregated customer funds. A PSAV license would be added to Mercado Bitcoin's existing payment institution authorization. The company said it has strengthened its alignment with regulated financial market practices.
The Central Bank will now analyze the request. Other exchanges, including Binance, OKX, Bybit, and Ripio, have also filed license requests. Some competitors, such as Bitso and Bity, have shifted clients or ended retail services in Brazil.
Read more: exame.com