Brazil’s crypto market is entering a decisive regulatory transition as the central bank adjusts the timeline for banks and payment institutions to cut ties with unauthorized virtual-asset providers. Under Resolution BCB 589, published in the Diário Oficial da União on 25 September and effective for Article 91 from 1 October, the operational cut-off has been postponed from 30 October to 6 November 2026. More importantly, the revised text removes the previous protection for firms that were merely “in the process of authorisation,” meaning a pending application no longer guarantees continued banking access unless the Banco Central do Brasil includes the firm on an official transition list.
Vote 108/2026 explains the extra week is intended to allow the BCB to publish a consolidated list of transitioning institutions and virtual-asset service providers that have filed for authorisation. As of early October, that list had not been published. The central bank has also issued its first known licence refusal in the new regime: Higherway Tech Soluções, which operates as Higher Global Payments, had its request rejected, with the decision dated 25 August and published on 28 September. André Zanon, a BCB official, said during an ABCripto webinar on 29 September that the regulator plans to accelerate refusals where basic Phase 1 requirements are not met. Public searches through early October identified only seven applications still progressing: Transfero, Mazzera, PFPAY, Masterpay, W Brasil, Onda Finance and Wynx.
Against this backdrop, Bity is ending its crypto services in Brazil. The company reports about 850,000 users across its business and more than R$1 billion under custody, though not all accounts are migrating automatically. Bitybank users have until 25 November to withdraw, sell or migrate holdings. Those who choose Mercado Bitcoin receive a six-digit code through official Bity channels and complete registration checks; Mercado Bitcoin says balance transfers are automatic and free once users opt in, with welcome benefits available until 29 November. Roberto Dagnoni, chairman and CEO of Mercado Bitcoin, said: “Being the partner chosen by Bity reflects 13 years of building a regulated platform, with governance and compliance at the centre of the business.” Mercado Bitcoin says it has 4.5 million clients.
BityPreço users face a separate route and timetable. They have until 27 November to withdraw crypto, transfer it elsewhere or accept migration to Bipa through the BityPreço app. No assets or personal data move without consent and completion of registration and security steps. After that date, eligible cryptoassets left at BityPreço will be converted into reais, and customers will have until 2 April 2027 to withdraw the cash. Users are not required to use either partner; they can move supported assets to another exchange or self-custody wallet, or sell and withdraw reais before the relevant deadlines.
The Bity exit is part of a wider consolidation of Brazil’s exchange sector. Coinext, Digitra.com and NovaDAX have already ended all or part of their Brazilian retail operations during 2026, and Bitso is transferring its direct Brazilian retail service to Mercado Bitcoin. Digitra.com linked its departure to central bank requirements and said about 200,000 clients were affected. For existing providers, the 30 October Phase 1 filing deadline remains unchanged, making the coming weeks critical for authorisation applications, banking relationships and customer migration decisions.
