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Broker with more than 420,000 clients says it found no viable alternative in the face of the new regulatory framework and will return assets by December; it is the fourth platform to announce an exit since April
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Another cryptocurrency broker has announced that it will close its doors in Brazil. Coinext announced on Thursday (3) the closure of its retail operations, in another case of an exchange giving up operating in the country under the Central Bank's new regulatory framework. The company states that it will return all client assets and funds in full, with a schedule that runs until November 30.
The decision affects only the trading and custody of digital assets. Coinext Asset, the group’s asset management arm, continues to operate, focused on institutional clients.
Founded in 2017 in Belo Horizonte, the platform had accumulated more than 420,000 clients. In a statement, CEO and cofounder José Artur Ribeiro said the company sought alternatives before deciding to close down.
“The new regulation brought a series of requirements for those who operate in this market. We spoke with potential partners, explored alternatives, and did our utmost to find a way to ensure the continuity of business. However, none of the options analyzed proved to be viable,” he wrote.
Deposits, new registrations, and enrollments in staking were suspended as of this Thursday. Purchase and sale orders remain available until October 15, and crypto withdrawals until October 20. Starting October 26, the remaining balances in cryptoassets undergo automatic conversion to reais. For those who want to keep operating, Coinext indicated Mercado Bitcoin and OKX, with no automatic account transfers and no commission for the referral.
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Fourth exit since April
Coinext is the fourth exchange to announce the end of crypto retail in the country in less than five months. In April, Bitnuvem left the market citing operating costs, regulatory requirements, and industry concentration. In June, NovaDAX, the fifth-largest in trading volume according to the Cointrader Monitor ranking, ended its activities after an “strategic assessment” by the Chinese controlling group. In August, Digitra.com said it would not seek authorization from the Central Bank and would close operations for around 200,000 customers by October 30.#USAugustNonfarmPayrollsDueToday
The common point is the regime created by the Central Bank since February 2. The rules require prior authorization for virtual asset service providers (PSAVs), with minimum capital compatible with the business, their own physical headquarters, asset segregation, and anti–money laundering prevention controls. Those who were already operating have until October 30 to file the request, or they will lose the right to continue operating in the market.
The practical effect has been consolidation. Larger platforms, such as Binance, Mercado Bitcoin, and OKX, are still operating, while smaller brokerages shut down, look for partners, or cut product lines.$BTC