Binance Applies For Brazil Crypto License, Restricts Lending And Margin Trading: 5 outlets compared

Binance applied to Brazil's central bank for a virtual-asset service provider license through its local entity, BBrasil, on October 23, as Brazil's October 30 deadline for existing crypto service providers approached. According to Cointelegraph, Brazil requires existing providers to apply for authorization by that date to continue operating under a temporary framework. Binance told Cointelegraph that the filing does not in itself constitute regulatory approval.

Alongside the filing, Binance announced changes for Brazilian users effective October 27. These include restrictions on crypto lending and margin trading and other services, as well as the delisting of 22 crypto assets in the country. Binance said it hopes ongoing dialogue with the central bank will allow it to restore some discontinued products. Thiago Sarandy said Binance supports a regulated market that considers the characteristics of virtual assets, and that the company hoped to offer other discontinued products "in the near future" once current regulatory requirements are met.

Binance has also restructured its Brazilian operations, dividing them between BBrasil, which handles cryptocurrency services, and Binance Brasil, which handles fiat balances, payments and traditional financial products. According to The Crypto News, Binance plans to expand into bill payments, international transfers and foreign exchange, positioning itself to compete more directly with traditional banks. Customers are being migrated into the new arrangement, with individual payment accounts scheduled to be established through its local brokerage by October 29. Sarandy told EXAME that Binance is prepared to operate under central bank supervision and intends to develop into a complete financial services platform. Firms that fail to apply by October 30 would have to wind down operations, according to the same source.