Lemon, an Argentine cryptocurrency application, is closing all operations in Brazil, citing capital requirements from the Central Bank's virtual-asset licensing framework as disproportionate to its Brazilian customer base. User accounts will close on October 16, 2026, while the company's Lemon Card Visa product will stop processing on September 30.
The shutdown follows Brazil's PSAV regulatory framework, which took effect on February 2, 2026. Unlicensed virtual-asset providers face a hard block after the October 30 license filing deadline. Lemon chose to redirect capital away from Brazil rather than fund a license application.
The decision reflects a broader shakeout in Brazil's crypto market. Coinext shut down after missing minimum capital requirements, while Digitra wound down retail trading operations. Crypto.com is keeping its Brazil entity but closing BRL accounts on October 25. Ripple is advancing a Brazil VASP license bid, while Binance and Coinbase, both well-capitalized, have expanded their Brazil presence.
Lemon operates around 15,000 Brazilian user accounts that still hold balances. The company said it will notify each user and assist with withdrawals before the October 16 cutoff. New BRL deposits are already blocked.
The company is redirecting capital to Argentina, Peru, and Colombia. Lemon highlighted Argentina's regulatory framework as offering "clear rules and a security environment," while characterizing Brazil's requirements as "expelling players that wanted to invest, innovate, and widen the service offer." Bitcoin purchases on Lemon in Argentina reached a 20-month high. Peru has over 1 million Lemon users and holds an SBS license, while Colombia has 150,000 users.
The exit underscores a capital filter rather than declining crypto adoption in Brazil. Binance relaunched its Brazil crypto card with Mastercard following a two-year absence, and maintains regulatory approval. Larger, locally embedded platforms are expanding rather than retreating.
