Coinbase applies for Brazilian crypto authorization, anticipates uninterrupted operations
The cryptocurrency exchange has submitted its application before Brazil's Oct. 30 cutoff date and anticipates continuing current operations during the regulatory review process.
The US-based cryptocurrency exchange Coinbase has filed for regulatory approval to function as a crypto service provider in Brazil, beating the country's Friday deadline for license applications.
The American cryptocurrency platform lodged its application with Brazil's Central Bank on Wednesday, operating within the nation's virtual asset service provider (VASP) regulatory framework, as confirmed in a statement provided to Cointelegraph.
The submission is designed to preserve Coinbase's current Brazilian business operations as the nation's central bank rolls out fresh requirements addressing governance standards, protection of customer assets, and regulatory compliance measures.
We do not expect the application review to require a suspension of our existing services
Coinbase spokesperson
The exchange also confirmed its intentions to introduce its "Everything Exchange" approach to the Brazilian market, which could see expansion into foreign exchange and payment services in addition to its cryptocurrency offerings. These additional services will necessitate distinct regulatory approvals.
Coinbase follows Binance in seeking authorization, with the latter having submitted its application on Oct. 23. However, Binance has imposed restrictions on crypto lending, margin trading and additional services in Brazil while removing 22 crypto assets from its platform to align with the new regulatory framework.
Brazilian regulations mandate that current crypto service providers submit authorization applications by the conclusion of October in order to maintain operations under transitional provisions. Existing operators who file applications before the deadline are permitted to conduct business as usual during the application assessment period.