Coinbase seeks Brazil crypto license, expects no service disruption

Abstract:Coinbase applied for authorization to operate in Brazil and said it does not expect its existing crypto services to be suspended during the licensing review.

Coinbase has applied for authorization to operate as a crypto service provider in Brazil ahead of the countrys license application deadline on Friday.

The US-based cryptocurrency exchange submitted its application to the Central Bank of Brazil on Wednesday under the countrys virtual asset service provider (VASP) framework, according to a statement shared with Cointelegraph.

The filing aims to maintain Coinbases existing Brazilian operations as the central bank introduces new requirements covering governance, customer asset safeguards and compliance.

“We do not expect the application review to require a suspension of our existing services,” a Coinbase spokesperson told Cointelegraph.

Coinbase also reiterated plans to bring its “Everything Exchange” strategy to Brazil, potentially expanding into foreign exchange and payments alongside crypto services. Those activities require separate regulatory authorizations.

Coinbase joins Binance, which applied for authorization on Oct. 23 but has restricted crypto lending, margin trading and other services in Brazil while delisting 22 crypto assets to comply with the new rules.

Brazil requires existing crypto service providers to apply for authorization by the end of October to continue operating under transitional arrangements. Existing providers that apply by the deadline can continue operating while their applications are reviewed.

Related: France proposes liability for crypto exchanges offering DeFi access

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