According to Bitcoinnews, the Central Bank of Brazil will allow traditional financial institutions to enter the crypto market while preparing to issue new regulations to set high threshold compliance requirements. According to local media reports, many small crypto startups may find it difficult to meet the requirements, including obtaining a virtual asset service provider (VASP) license. The regulatory framework also stipulates that the minimum operating capital requirements range from 1 million reais (about 174,000 US dollars) to 3 million reais (about 522,000 US dollars) depending on the type of business. Industry insiders are concerned about rising compliance costs, which may restrict the activities of micro-enterprises.