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Binance Applies For Brazil Crypto License, Restricts Lending And Margin Trading
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Binance filed for Brazil crypto service provider license with the Central Bank. Lending and margin trading restricted; 22 assets delisted for Brazilian users.
Binance seeks Brazil license
Binance applied to Brazil’s central bank for a virtual-asset service provider license through its local entity, BBrasil, on Oct. 23, as Brazil’s October 30 deadline for existing crypto service providers approached.
Binance said the filing would allow users in Brazil to continue accessing crypto trading, stablecoin trading, payments, and investment services, while it restricted crypto lending and margin trading and delisted 22 cryptocurrencies starting October 27.
Cointelegraph reported that Binance filed the application on October 23 through its local entity, BBrasil, and that Brazil requires existing crypto service providers to apply for authorization by October 30 to continue operating under a temporary framework.
Binance told Cointelegraph that the filing would allow Brazilian users to continue accessing crypto assets, stablecoin trading, payments and investment services, and it said the application does not in itself amount to regulatory approval.
Service curbs and token delists
Binance announced changes for Brazilian users effective Tuesday, including restrictions on crypto lending and margin trading and other services, as it adjusted to Brazil’s new regulatory requirements. Binance also delisted 22 crypto assets in the country, and it said it hoped ongoing talks with the central bank would allow it to restore some services.
Thiago Sarandy said Binance supports a regulated market that considers the characteristics of virtual assets, and he added that Binance hoped “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.” bloomingbit said Binance hoped its ongoing talks with the central bank would allow it to resume the suspended services in the near term, while it restricted crypto lending and margin trading for users in Brazil starting October 27.
Brazil deadline and restructuring
Binance divided its Brazilian operations between BBrasil for cryptocurrency services and Binance Brasil for fiat balances, payments and traditional financial products, as it prepared to expand financial services beyond digital asset trading. The Crypto News source said Binance planned to expand its financial services in Brazil with bill payments, international transfers and foreign exchange services, while seeking to compete more directly with traditional banks.
The Crypto News source also said Binance had begun moving Brazilian customers into the new arrangement, with individual payment accounts scheduled to be established through its local brokerage by October 29. Thiago Sarandy told EXAME that Binance was prepared to operate under central bank supervision and intended to develop into a complete financial services platform, while the same source said firms that fail to apply by October 30 would have to wind down their operations.