Coinbase seeks Brazil crypto license, expects no service disruption

Coinbase has submitted a request to obtain a license from Brazil's Central Bank, with the deadline set for October 30. The US-based cryptocurrency exchange is confident that it will be able to continue its current services as the regulators assess the application. Coinbase submitted its application to the Central Bank of Brazil on Wednesday, adhering to the country's virtual asset service provider (VASP) framework.

The application aims to maintain Coinbase's existing Brazilian operations amid the introduction of new requirements focused on governance, customer asset protection, and compliance. A Coinbase spokesperson assured Cointelegraph that they do not anticipate the review process to necessitate any service interruptions. Furthermore, Coinbase intends to expand its "Everything Exchange" strategy into Brazil, potentially venturing into foreign exchange and payments services, which would require separate regulatory approvals.

This move places Coinbase alongside Binance, which also applied for authorization on October 23 but has temporarily limited crypto lending, margin trading, and other services in Brazil while delisting 22 crypto assets in compliance with the new regulations. Brazil mandates that existing crypto service providers submit their applications by the end of October to retain their operating status under transitional arrangements.

Providers that meet this deadline can maintain their operations while their applications are being reviewed.