Binance has begun restricting eight services for users in Brazil and delisting 22 tokens as part of its licensing application and regulatory compliance process in the country.
According to a report by Wu Blockchain, citing Blocknews, the exchange applied to the Central Bank of Brazil on October 23 through its local company, BBrasil, to operate as a virtual asset service provider. The application was submitted ahead of the regulatory deadline of October 30.
Crypto Loans and Margin Trading Also Affected
Restrictions affecting Brazilian users began taking effect on October 27. The eight restricted services include crypto loans, margin trading, mining pools, and cloud mining.
The exchange is also delisting 22 tokens in Brazil. The assets named in the report include USDE, USTC, DCR, and XVG. The changes are being implemented to comply with local regulations governing users’ access to products and tokens in the country.
What Will Happen to Open Positions?
In general, existing positions in the affected products can only be reduced or closed; opening new positions will not be permitted. This leaves users still trading in restricted products with the options of reducing or closing their positions.
Binance also plans to complete the transition of Brazilian users to a local payment account setup by October 29. This date falls one day before the regulatory deadline.
Not investment advice.