TLDR
- Binance applied for a crypto license in Brazil on October 23, ahead of the October 30 deadline.
- Brazilian regulators will review the application while the exchange continues operating under transitional rules.
- Trading restrictions took effect on October 27, affecting 22 crypto assets and eight services.
- Customers can still access supported spot trading and stablecoins despite the new restrictions.
- Account migration to Binance’s local Brazilian entity is scheduled for completion by October 29.
- Regulatory reporting requirements for cross-border crypto transfers will take effect on November 1.
Binance has applied for a crypto service provider license in Brazil, seeking to continue operating ahead of the October 30 deadline. The exchange filed on October 23, days before new restrictions on its Brazilian trading services took effect.
The application allows Binance to remain active while the Central Bank of Brazil reviews its request. However, the filing does not mean regulators have approved.
Binance Submits License Application
Binance filed through BBrasil Sociedade Prestadora de Serviços de Ativos Virtuais Ltda., its local crypto services company. The application seeks authorization under Brazil’s rules for virtual asset providers.
The exchange also submitted technical certification prepared with CertiK, covering nearly 900 compliance checks, according to the information provided by the company. Regulators will assess its documents before deciding whether to approve the request.
The Brazilian application is separate from efforts elsewhere. In the United States, Binance US has sought approval to offer prediction markets under a different regulatory system.
Trading Products Face New Restrictions
From October 27, Binance restricted eight services for Brazilian accounts, including crypto loans, margin trading, Binance Pool, Cloud Mining, Launchpool, Megadrop, HODLer Airdrops and Alpha 2.0.
It also ended trading access to 22 tokens, including USDE, USTC, XVG, and DCR. Customers can still hold affected assets and withdraw them. Supported cryptocurrencies and stablecoins remain available for spot trading.
Existing loans can be repaid but not increased. Margin users cannot open new positions, although Binance has not set a mandatory closing date. Separately, European officials are reviewing possible rules for staking and lending.
Brazilian Accounts Move to Local Company
Binance plans to complete its account migration by October 29. Customers will receive local payment accounts through Binance Brasil Corretora, formerly known as Sim; Paul.
The exchange acquired Sim; Paul after Brazil’s central bank approved the purchase in December 2024. Binance says customers will retain transaction histories and existing crypto deposit addresses.
From November 1, international crypto transfers will require details about the payment’s purpose and the sender or recipient. Binance will report required information to the central bank.
Other countries are updating rules. Canada opened a consultation on stablecoin regulations, covering reserves and customer redemptions. Brazil’s licensing review follows its own legal process.
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