Binance and Itaú, Brazil's largest bank, have formalized their applications to become regulated virtual asset service providers ahead of a central bank deadline of October 30. The deadline marks the cutoff for service providers to submit licensing documents and continue operating while their applications are reviewed.
Binance applied for its license through BBrasil Sociedade Prestadora de Serviços de Ativos Virtuais, a new entity it established in Brazil for regulatory purposes. The exchange will continue offering financial products during the review process but has temporarily removed some offerings to comply with national regulations.
Thiago Sarandy, general director of Binance in Brazil, stated that the company seeks to democratize access to low-cost global assets for Brazilian users and views the license application as a commitment to operating within the country's established legal framework.
Itaú formalized its role in Brazil's crypto ecosystem separately, with the bank offering crypto trading for bitcoin, ethereum, and USDC. As an established financial institution, Itaú only needs to communicate its intention to become licensed, as banks already meet more stringent regulatory requirements than other service providers.
The regulatory framework has created significant barriers for smaller crypto firms. Stringent requirements including capital minimums, auditing, anti-money laundering procedures, and constant reporting have prompted many companies to exit the Brazilian market. By September 19, only four crypto firms had applied to continue operating under the new rules.
