Nearly one-third of Brazil's 120 virtual asset service providers that applied for regulatory licenses failed to meet new capital requirements, according to Brazilian central bank officials. Ailton Aquino, head of supervision at the central bank, confirmed that at least 30% of applicants did not satisfy equity capital thresholds set by Resolutions 519 and 520, which mandate institutions hold up to $7.2 million in capital depending on classification. Applications from non-compliant exchanges may be rejected following review. The October 30 application deadline also saw a significant number of firms fail to submit required audited financial statements. The stricter regulatory framework has already prompted several crypto companies, including Bitnuvem, NovaDAX, Digitra, and Coinext, to exit the Brazilian market.