Binance files for Brazil crypto license ahead of Oct. 30 deadline

Binance has applied for a cryptocurrency service provider license in Brazil as the country’s October 30 regulatory deadline approaches, while preparing to expand its financial services business beyond digital asset trading.

Summary

• Binance has applied for a cryptocurrency service provider license with Brazil’s central bank ahead of the October 30 deadline for existing exchanges to seek regulatory approval.
• The exchange has divided its Brazilian operations between two entities, with BBrasil handling cryptocurrency services and Binance Brasil managing fiat balances, payments and traditional financial products.
• Binance plans 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 exchange is restricting eight services and removing 22 tokens from trading for Brazilian users as it adjusts its operations to comply with the country’s new regulatory requirements.

According to an October 26 EXAME report, the exchange has submitted its application to the Central Bank of Brazil through its local entity, BBrasil, which will handle cryptocurrency operations under the country’s new regulatory framework.

The application comes as existing crypto companies face a deadline to enter the authorization process if they want to continue operating in Brazil. Firms that fail to apply by October 30 will have to wind down their operations, while those that submit applications must still receive regulatory approval.

Thiago Sarandy, Binance’s general manager in Brazil, told the publication that the exchange is prepared to operate under central bank supervision and intends to develop into a complete financial services platform.

The company wants to offer more financial products than traditional banks, according to Sarandy, while improving services that customers can already access through conventional financial institutions.

Binance restructures Brazil operations for licensing

To meet Brazil’s regulatory requirements, Binance has divided its local business between two companies, separating cryptocurrency services from activities involving traditional currencies and financial products.

Its existing brokerage, Sim;paul, which Binance agreed to acquire in 2022, has been renamed Binance Brasil Corretora de Câmbio e Valores Mobiliários. The acquisition received central bank approval in December 2024.

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

Sarandy explained that the brokerage could eventually offer derivatives if Brazil’s securities regulator, the Comissão de Valores Mobiliários, permits those products.

Binance has already begun moving Brazilian customers into the new arrangement, with individual payment accounts scheduled to be established through its local brokerage by October 29.

Binance plans more banking and payment services

Beyond its cryptocurrency business, Binance is preparing to introduce several financial services for Brazilian customers, including bill payments, account portability, international transfers and foreign exchange transactions.

The exchange currently operates Pay Pix, which allows users to make payments and transfer Brazilian reais using their cryptocurrency balances.

In August, Binance announced plans to provide Brazilian customers with access to US stocks and exchange-traded funds, adding traditional investment products to its existing cryptocurrency services.

Sarandy said the company intends to compete directly with banks on the number of available products and the quality of services offered.

Some of its existing cryptocurrency products, however, are being restricted as the company adjusts to the new rules.

As crypto.news previously reported, Binance announced restrictions on eight services and the removal of 22 tokens from trading for Brazilian users beginning October 27.

Affected services include margin trading, cryptocurrency loans, Binance Pool, Cloud Mining, Launchpool, Megadrop, HODLer Airdrops and Alpha 2.0.

Existing margin positions can remain open, although customers cannot place new margin orders or borrow additional funds. Binance has not announced when the restricted services might return.

Sarandy said the exchange would seek regulatory changes and work with banking partners to restore some products, particularly lending and margin services.

Brazil crypto licensing rules pressure smaller exchanges

Brazil’s new licensing framework requires cryptocurrency companies to meet standards covering capital, governance, security, compliance and customer protection.

A September industry assessment estimated that fewer than 10% of the country’s existing cryptocurrency service providers would seek authorization.

The assessment suggested that only 20 to 25 companies might submit applications, with roughly 10 ultimately receiving licenses. These estimates were based on industry expectations before the filing deadline.

The central bank has introduced independent audit requirements covering anti-money laundering controls, customer asset segregation, risk management and internal compliance procedures.

Sarandy acknowledged the regulator’s intention to strengthen investor protection but criticized the time given to cryptocurrency businesses to prepare.

He said exchanges received only 270 days to meet the requirements, compared with approximately five years for payment institutions.

Several international companies, including Revolut, Lemon Cash and Bitso, have announced plans to discontinue cryptocurrency services in Brazil. Domestic exchanges Coinext, NovaDAX, Bity and Digitra.com have closed their operations.

According to Sarandy, these departures could affect Binance because several smaller providers previously relied on its services.

Meanwhile, OKX, Bybit, Transfero, Brasil Bitcoin and several other companies have already submitted licensing applications, while Coinbase, Foxbit and Mercado Bitcoin are among those expected to apply.

Brazilian banks including Bradesco, BTG Pactual and Itaú already have digital asset operations.

Separately, Binance will introduce new international transfer checks from November 1, requiring Brazilian customers to provide transaction purposes and counterparty information when sending or receiving cryptocurrencies across borders.

The exchange said transfers involving more than $50,000 will require customers to select from 96 transaction purpose codes, replacing the simplified list used for smaller transfers.