Binance and Itau File for Crypto Licenses in Brazil as Rivals Exit

Binance and Itaú Formalize Requests to Operate as VASPs in Brazil

Brazil’s largest institutions are rushing to get licensed and enter the digital assets market before October 30, a central bank-established deadline.

Binance, the world’s largest cryptocurrency exchange, and Itaú, Brazil’s largest financial institution, both recently formalized their requests to become regulated virtual asset service providers in Brazil.

Valor Econômico reported that Binance applied for a license from the central bank on Friday the 23rd and will keep offering its financial products while the bank reviews its application. The request was forwarded by BBrasil Sociedade Prestadora de Serviços de Ativos Virtuais, a new company established in Brazil for this purpose.

Thiago Sarandy, general director of Binance in Brazil, stressed that Binance sought to democratize access to low-cost global assets and investments for Brazilian users.

“Protecting this request is a decisive step for Binance’s operations in Brazil and reinforces our commitment to Brazilian users to offer products and services within the conditions established by national legislation and regulation,” he said.

While Binance had to remove some products from its platform to comply with Brazilian regulation, it hopes to reintroduce them later with regulator support.

“We hope that the ongoing dialogue with the Central Bank will allow us to offer, in the near future, other products that have been discontinued to meet current regulations, in order to allow Brazilian users to access the same opportunities offered globally,” said Sarandy.

Following Binance, Itaú, Brazil’s largest bank, also formalized its role in Brazil’s crypto ecosystem on Tuesday. Unlike other virtual assets service providers (VASPs), banks like Itaú only need to communicate their intention to become licensed, as these institutions already comply with more stringent requirements.

Itaú also offers crypto trading for several digital assets on its platform, including bitcoin (BTC), tther (ETH), and USDC. Guto Antunes, superintendent of digital assets at Itaú Unibanco, stressed that the bank prioritizes customer security as a solid foundation for digital assets in the country.

“An environment with clear rules and high security and governance standards benefits the entire industry and, especially, consumers,” he said.

The stringent requirements have already made many crypto firms exit the Brazilian market, as they were unable to comply with the capital requirements, auditing, AML/CTF procedures, and constant reporting mandated by the central bank. By September 19, only four crypto firms had applied to keep operating.