Binance has applied for a crypto service provider license in Brazil, filing its application on October 23, days before the country's October 30 deadline. The move seeks to secure the exchange's continued operation in the country, and the submission allows it to remain active while the Central Bank of Brazil reviews its request, although it does not mean regulators have approved. New restrictions on Binance's Brazilian trading services took effect on October 27, and the platform continues to operate under transitional rules while the review proceeds.

License Filing and Compliance Documentation

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 service providers.

The exchange also submitted a technical certification prepared with security firm CertiK, covering nearly 900 compliance checks, according to information provided by the company. Regulators will assess the documents before deciding whether to approve the request.

The Brazilian application is separate from Binance's efforts elsewhere. In the United States, Binance US has sought approval to offer prediction markets under a different regulatory system.

Trading Restrictions Take Effect

From October 27, Binance restricted eight services for Brazilian accounts: crypto loans, margin trading, Binance Pool, Cloud Mining, Launchpool, Megadrop, HODLer Airdrops and Alpha 2.0. The exchange also ended trading access to 22 tokens, including USDE, USTC, XVG and DCR, as detailed in Binance's customer notice.

Customers can still hold the affected assets and withdraw them, and 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 for existing ones.

Accounts Move to Local Entity

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 their transaction histories and existing crypto deposit addresses.

New Reporting Rules for Cross-Border Transfers

From November 1, international crypto transfers will require details about the payment's purpose and the sender or recipient. Binance will report the required information to the central bank under Brazil's new reporting framework for cross-border crypto transfers.

The Brazilian licensing review comes as other jurisdictions update their digital asset frameworks. European officials are reviewing possible rules for staking and lending, while Canada has opened a consultation on stablecoin regulations covering reserves and customer redemptions. Brazil's licensing review follows its own legal process. For Binance's Brazilian operations, the next checkpoints are the October 29 completion of the account migration, the November 1 start of cross-border transfer reporting, and the Central Bank of Brazil's decision on the license application.

Source: CoinCentral