Lemon is closing all Brazil operations by October 16, 2026. The Argentine crypto app cited capital rules under Brazil’s new licensing framework. Lemon will redirect funds toward Argentina, Peru, and Colombia instead.
License Capital Proves Too Costly
Brazil’s Central Bank enforces the PSAV framework, active since February 2026. The rules set capital thresholds that unlicensed firms must meet. Lemon determined the requirement outweighed its local business size.
New BRL deposits are already blocked for existing customers. The Lemon Card, launched weeks earlier with Pomelo, stops processing September 30. Around 15,000 Brazilian users still hold active balances.
Lemon says it will contact every affected user directly. The company will assist customers with withdrawals before the deadline. Accounts fully close on October 16, 2026.
Wider Brazil Shakeout Continues
Lemon is not alone in retreating from Brazil’s market. Coinext shut down after missing minimum capital requirements. Digitra wound down its retail trading operations entirely.
Crypto.com keeps its Brazil entity but closes BRL accounts October 25. Ripple, meanwhile, continues pursuing a Brazil VASP license. Only well-capitalized firms appear positioned to remain.
Binance already secured regulatory approval inside Brazil. Coinbase expanded USDC-earn products into the same market. Binance also relaunched its Brazil card with Mastercard support.
Argentina, Peru, and Colombia Gain Lemon’s Focus
Lemon frames Argentina’s framework as clearer and more secure. Brazil’s rules, by contrast, pushed out smaller innovative players. Bitcoin purchases on Lemon in Argentina hit a 20-month high.
Peru already hosts over one million Lemon users under an SBS license. Colombia adds another 150,000 users to Lemon’s regional base. Both markets will receive the capital freed from Brazil.
Bitget’s own PSAV registration suggests Argentina still attracts serious capital. Brazil’s depth remains real, with a proposed 1 million BTC reserve bill in Congress. Lemon’s exit reflects a capital filter, not a market collapse.
