Brazil’s move to regulate its booming crypto sector like a traditional bank system is forcing a shake-up of the country’s Virtual Asset Service Providers (VASPs), with an imminent regulatory deadline expected to push many smaller exchanges out of the market. The Central Bank of Brazil (BC) has set an October 30, 2026, deadline for all existing crypto exchanges to file for authorization, a process that requires meeting rigorous capital and governance standards that few uncapitalized local platforms can afford. The high cost of compliance and the stringent new audit requirements are making continued operation untenable for many, in what the regulator calls a "same risk, same rule" approach to the sector.