Binance has applied for a crypto service provider license in Brazil before the Oct. 30 deadline. To comply with local rules, it is restricting products and cutting 22 tokens for Brazilian users. The exchange hopes talks with the central bank will let it bring some services back.
Binance applied for a cryptocurrency service provider license in Brazil ahead of the regulatory deadline on Friday, Oct. 30. The exchange wants to keep operating in one of Latin America's largest crypto markets.
Application filed through local entity
The exchange submitted the application to the Central Bank of Brazil on Oct. 23 through its local entity, BBrasil. The company said the filing would let Brazilian users keep accessing crypto assets, stablecoin trading, payments and investment services.
A filing is not an approval. However, existing providers that apply on time can keep operating until their authorization process concludes. Those that miss the deadline must stop providing crypto services within 30 days.
Products cut for Brazilian users
The application comes with a narrower product menu. Binance is restricting eight products from Oct. 27, including loans, Binance Pool, cloud mining and margin trading. Affected products no longer accept new positions, but users can close existing ones and move balances to their spot accounts.
The exchange is also delisting 22 crypto assets for Brazilian users. Binance says balances stay in users' accounts after trading ends and can be withdrawn or reinvested.
Users with open positions in the restricted services are not being forced out immediately. According to Crypto Briefing, they are moving into reduce-only or closure status, so traders can shrink exposure but cannot add to it.
Account migration and the road ahead
Binance says Brazilian users will receive individual payment accounts at Binance Brasil Corretora de Câmbio e Valores Mobiliários by Oct. 29. That entity will handle transactions in reais.
Thiago Sarandy, Binance's general manager in Brazil, said the company supports a regulated market. He added that Binance hopes ongoing dialogue with the central bank will let it offer some discontinued products again in the near future.
Sources: Cointelegraph, The Defiant, Crypto Briefing
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