Two Brazilian crypto exchanges shut down after implementation of new regulation

• The exchanges, Acesso and Latoex, have decided to suspend their operations rather than paying hefty fines and comply with strict regulations.
• The latest compliance demands, in particular, requires expensive investment into new resources, which aren’t easily affordable.

Following the enactment of new tax laws in Brazil, two crypto exchanges have been forced to shut down. According to a Bitcoin.com report, exchanges Acesso and Latoex are the first two victims of the increased regulation. The exchanges have decided to suspend their operations in the face of hefty fines, strict rules and shrinking trading volumes. 

Pedro Nunes, the co-founder of Acesso Bitcoin, told Portal do Bitcoin:

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The latest regulations, which were implemented in August 2019, require traders and brokerages to report all crypto-related transactions. Those who fail to do so are subjected to fines ranging from 500 BRD to 1500 BRD ($120 – $360). According to exchanges, compliance with the latest regulation requires expensive investment into new resources, which less profitable firms can not afford easily.