Binance applies for authorization in Brazil and restricts eight products

Local entity BBrasil files the application

Binance has applied to Brazil’s central bank for authorization as a virtual asset service provider. According to the statement shared with Cointelegraph, which reported the news on October 27, its local entity BBrasil submitted the application on October 23. The group presents the filing as a way to continue its operations in the country under the new regulatory framework. This is an application submitted to the regulator, not an announcement that a license has already been granted.

Binance’s official FAQ distinguishes the roles of its two local entities. BBrasil is to provide permitted virtual asset services. Transactions in reais go through Binance Brasil Corretora de Câmbio e Valores Mobiliários, formerly Sim;paul, where migration to individual payment accounts is scheduled by October 29. That financial company’s authorization is separate from the one being sought for crypto services.

October 30 concerns the first phase

Central bank Normative Instruction 704 sets October 30, 2026, as the deadline to submit first-phase documents for virtual asset service companies already in operation. Article 9 requires, among other items, a formal application, a declaration of prior activity, a business plan summary and statements concerning executives. The rule also requires a reasonable assurance report issued by an independent auditor registered with Brazil’s securities regulator, the CVM. Meeting the timetable therefore does not, by itself, demonstrate that every authorization requirement has been satisfied.

A separate deadline must be distinguished from that filing. In its current version, Article 91 of Resolution 520 makes November 6, 2026, the starting date for a prohibition on regulated institutions facilitating certain transactions with unauthorized providers, subject to the stated exceptions. This replaces October 30 in that article following the amendment introduced by Resolution 589. Postponing this restriction does not, in itself, remove the date set for the first phase of applications. The two provisions address different obligations.

Product restrictions begin on October 27

Binance says in its FAQ that eight products become restricted in Brazil from October 27: Loans, Binance Pool, Cloud Mining, margin trading, Launchpool, Megadrop, HODLer Airdrops and Alpha 2.0. Cointelegraph also reports that 22 assets are being removed from trading in the country. These changes concern the offering for Brazilian customers; they do not describe a worldwide removal of all the products or tokens involved.

The arrangements depend on the service. For existing loans, the FAQ provides for repayment-only operation, with no fee or penalty applied solely because of this change. Existing margin positions may be maintained with no closing deadline currently specified, but without new margin orders, fund transfers or additional borrowing from October 27. Restricting the opening of positions therefore does not mean that all existing exposures are automatically liquidated that day.