Binance Seeks Brazilian Crypto License as 8 Services Face Restrictions and 22 Tokens
Binance has applied for a Brazilian cryptocurrency service provider license ahead of a key regulatory deadline, while introducing restrictions on eight services and delisting 22 tokens in the country. The exchange submitted its application on October 23 through its local entity, BBrasil, seeking authorization to operate as a virtual asset service provider, according to Blocknews, as reported by Wu Blockchain.
The filing came ahead of Brazil's October 30 regulatory deadline. As part of its efforts to comply with local requirements, Binance began restricting eight services for Brazilian users on October 27. The measures affect several crypto-related products, including crypto loans, margin trading, mining pools and cloud mining.
Eight Services Face Restrictions in Brazil
The restrictions cover eight services, although the available report specifically identifies crypto loans, margin trading, mining pools and cloud mining among the affected products. Binance's changes also limit what users with existing positions in affected products can do.
According to Wu Blockchain the reported measures, existing positions are generally limited to reductions or closures, while opening new positions is prohibited. This means users can generally reduce their exposure or close affected positions but cannot establish new ones under the restrictions.
The changes form part of Binance's response to Brazil's regulatory requirements. The report does not provide a complete list of all eight restricted services or specify separate implementation details for every affected product.
Binance Delists 22 Tokens for Brazilian Users
Alongside the service restrictions, Binance is delisting 22 tokens in Brazil. The assets specifically identified in the report include USDE, USTC, DCR and XVG. The remaining tokens in the delisting list were not named in the available information.
The delistings represent a separate element of the exchange's changes for the Brazilian market. The report does not specify the individual reasons for removing each token, so the measures should not be interpreted as evidence of a particular issue with any one asset.
The service restrictions and token removals are being implemented as Binance addresses the regulatory framework governing virtual asset service providers in Brazil. The application submitted through BBrasil is intended to allow the company to operate as a virtual asset service provider, referred to in the report by the Portuguese acronym SPSAV.
Local Payment-Account Migration Due October 29
Binance also plans to complete the migration of Brazilian users to its local payment-account structure by October 29, one day before the October 30 regulatory deadline. The migration is another part of the exchange's planned changes to its local operations.
The reported timeline places several developments close together: Binance filed its license application on October 23, began restricting services on October 27, and plans to finish the payment-account migration by October 29. The regulatory deadline follows on October 30.
The information was reported by Blocknews and shared by Wu Blockchain. The report identifies the application, service restrictions, token delistings and payment-account migration, but does not state whether Brazilian authorities have approved Binance's application.