Brazil’s central bank has set an Oct. 30 deadline for crypto firms to secure virtual asset service provider (VASP) licences, prompting the country’s two biggest financial players to act. Binance, the world’s largest cryptocurrency exchange, and Itaú Unibanco, Brazil’s leading bank, formally submitted applications to become regulated VASPs, seeking to maintain operations while the regulator reviews their requests. The move comes amid tightening capital, compliance and anti‑money‑laundering requirements that have already driven many smaller crypto firms out of the market.

Binance’s Application and Temporary Product Pause

According to Bitcoin.com, Binance filed its licence request on Oct. 23 through a newly created Brazilian entity, BBrasil Sociedade Prestadora de Serviços de Ativos Virtuais. The exchange will continue offering its existing financial products while the application is under review, but it has temporarily removed certain services to align with national rules. Binance’s Brazil general director, Thiago Sarandy, said the filing is a "decisive step" to democratise low‑cost global assets for Brazilian users and that ongoing dialogue with the Central Bank could allow the reinstatement of the paused products in the near future.

Itaú’s Entry as a Regulated VASP

Itaú followed Binance’s lead, formally communicating its intention to become a licensed VASP. Because banks already meet stricter supervisory standards, the process for Itaú is largely procedural, according to the report. The bank currently offers crypto trading for Bitcoin (BTC), Ethereum (ETH) and USDC on its platform. Guto Antunes, superintendent of digital assets at Itaú, emphasized that clear rules and high security standards benefit both the industry and consumers.

Market Impact of Stricter Regulations

The Central Bank’s stringent requirements—covering capital buffers, auditing, AML/CTF procedures and continuous reporting—have left many smaller crypto firms unable to comply. By mid‑September, only four firms had applied to retain operations, and several have already exited the Brazilian market. Analysts note that the licensing rush by Binance and Itaú signals a consolidation toward larger, well‑capitalised entities capable of meeting the new regulatory bar.

What to Watch Next

Regulators are expected to issue decisions on the pending applications shortly after the Oct. 30 deadline, which will clarify the operational scope for Binance and Itaú. Observers will also monitor whether other major exchanges, such as Coinbase, succeed in obtaining Brazilian licences without service interruptions, as hinted by Cointelegraph. The outcome will shape Brazil’s crypto ecosystem, influencing both domestic user access and the broader Latin American market.

Sources

This article was prepared by the CoinMag newsroom from the reports listed above.