Binance files for Brazil crypto license ahead of October 30 deadline

The exchange is simultaneously delisting 22 crypto assets for Brazilian users and is hoping discussions with the central bank will permit the restoration of certain services.

The submission was made to the Central Bank of Brazil via its local entity, BBrasil, which will manage cryptocurrency operations under the nation's new regulatory framework. This application is timely, as current crypto firms face a deadline to begin the authorization process to remain operational in Brazil.

Thiago Sarandy, Binance’s general manager in Brazil, stated to the publication that the exchange is prepared to operate under central bank supervision and aims to evolve into a comprehensive financial services platform. This platform intends to offer more financial products than conventional banks, while enhancing services currently available through traditional financial institutions.

To comply with Brazilian regulations, Binance has segmented its local business into two entities: one handling traditional currency and financial product activities, and another dedicated to cryptocurrency services. The existing brokerage, Sim;paul, which Binance acquired in 2022, has been renamed Binance Brasil Corretora de Câmbio e Valores Mobiliários, and this acquisition secured central bank approval in December 2024.

The brokerage will manage customer balances in Brazilian reais and other fiat currencies, alongside payment services and access to US stocks. Cryptocurrency transactions will be managed by BBrasil Sociedade Prestadora de Serviços de Ativos Virtuais, the entity pursuing authorization as a virtual asset service provider.

Binance is preparing to introduce additional financial services for Brazilian clientele, including foreign exchange transactions, bill payments, account portability, and international transfers. Furthermore, the exchange announced in August plans to give Brazilian customers access to US stocks and exchange-traded funds, complementing its existing crypto offerings.

However, some current cryptocurrency products are being restricted as the company adapts to the new rules. As previously reported by crypto.news, Binance announced restrictions on eight services and the removal of 22 tokens from trading for Brazilian users starting October 27. These restricted services include Cloud Mining, Launchpool, Margin trading, and cryptocurrency loans.

The new licensing framework mandates that crypto companies adhere to standards covering governance, capital, security, compliance, and customer protection. Industry assessments prior to the filing deadline indicated that fewer than 10% of existing providers might seek authorization, with estimates suggesting only 20 to 25 companies might apply, and around 10 ultimately receiving licenses.

This regulatory shift reflects a broader trend among financial institutions and exchanges to formalize operations within the jurisdiction. Several international entities, such as Revolut, Lemon Cash, and Bitso, have publicly announced plans to cease crypto services in Brazil, and domestic exchanges like Coinext, NovaDAX, Bity, and Digitra.com have shut down operations.

Why it matters

This filing is crucial as existing crypto firms must apply by October 30 to continue operating under Brazil's new regulatory framework. Success could allow Binance to expand into a full financial services platform, competing directly with traditional banks. The outcome will set a precedent for how digital asset exchanges operate under increased regulatory scrutiny in Brazil.