Binance files for Brazil crypto license ahead of Oct. 30 central bank deadline
In brief
- Binance filed with the Central Bank of Brazil on Oct. 23 through local entity BBrasil.
- Brazil's existing crypto providers must apply for authorization by Friday, Oct. 30.
- Binance is delisting 22 crypto assets for users in Brazil.
- Crypto lending and margin trading restrictions took effect Tuesday.
- Filing an application doesn't amount to regulatory approval.
What the filing covers
Binance said the application would let Brazilian users keep accessing crypto assets, stablecoin trading, payments and investment services.
It's worth being clear about what this is (and what it isn't). Filing an application doesn't constitute regulatory approval, and nothing in the statement says the central bank has granted Binance a license.
Under Brazil's rules, existing crypto service providers must submit authorization applications by Oct. 30 to keep operating under transitional arrangements. Binance got its paperwork in with a week to spare.
Delistings and service cuts
Getting into compliance hasn't been free for users. Binance announced changes for Brazilian customers effective Tuesday, including restrictions on crypto lending, margin trading and other services. The exchange is also delisting 22 crypto assets in the country.
That's 22 tokens coming off the board for Brazilian users.
Hoping to bring products back
So does Binance see these cuts as permanent? Not if the regulator cooperates. Thiago Sarandy, Binance's general manager in Brazil, said the company hopes its ongoing dialogue with the Central Bank will let it offer products that were discontinued to comply with current regulations, as reported by Cointelegraph.
“We support a regulated market that considers the characteristics of virtual assets, so that access to technology and innovation continues to advance, but we hope that the ongoing dialogue with the Central Bank will allow us to offer, in the near future, other products that were discontinued to comply with current regulations,” said Thiago Sarandy, Binance’s general manager in the country.
For now, the application sits with the central bank. Friday's deadline is the next date that matters, both for Binance's transitional status and for every other existing provider that wants to keep operating in Brazil while authorization is pending.
Frequently asked questions
Does Binance now have a crypto license in Brazil?
No. Binance applied for a cryptocurrency service provider license with the Central Bank of Brazil on Oct. 23 through its local entity BBrasil. Filing an application doesn't constitute regulatory approval.
What is Brazil's Oct. 30 crypto deadline?
Brazil requires existing crypto service providers to submit authorization applications by Oct. 30 to keep operating under transitional arrangements. Binance filed its application a week ahead of that date.
What changes are Brazilian Binance users seeing?
Binance announced changes effective Tuesday, including restrictions on crypto lending, margin trading and other services. The exchange is also delisting 22 crypto assets in Brazil, and it hopes talks with the central bank will let it restore some discontinued products.
