Binance Shuts Brazilians Out of New Loans and Margin Ahead of a Licensing Deadline

Introduction

Binance has temporarily restricted Brazilian users from opening new positions in several of its services, including loans and margin trading, as it awaits approval from the Central Bank of Brazil (BCB). The move comes ahead of a regulatory deadline on October 30, after the exchange submitted an application for authorization on October 23. Existing holdings remain accessible, but new activity is blocked for eight products and 22 tokens.

What’s been cut and why

• Products suspended: Loans, Binance Pool, Cloud Mining, Margin, Launchpool, Megadrop, HODLer Airdrops, and Alpha 2.0. Users can only close existing positions; new positions cannot be opened.
• Token delistings: 22 tokens, including USDE, USTC, MANTRA, GMT, and STORJ, are no longer available to Brazilian accounts. Balances can still be withdrawn or moved to other assets.
• Regulatory backdrop: The BCB’s Resolution BCB 520 and Normative Instruction 704 set an October 30 deadline for crypto firms already operating in Brazil to submit licensing applications. Binance’s filing, made under its local entity BBrasil Sociedade Prestadora de Serviços de Ativos Virtuais Ltda., is still pending, meaning the exchange cannot guarantee continued service until approval is confirmed.

Impact on users

• Existing loans: Borrowers must repay without incurring fees or penalties; no new loans can be taken.
• Margin accounts: Open positions can stay open, but users cannot add to them.
• Asset access: While delisted tokens remain in user wallets, they cannot be traded on Binance’s platform. Users must withdraw or transfer these assets elsewhere.
• Future transition: By October 29, all Brazilian users will be moved to an individual payment account under Binance Brasil Corretora de Câmbio e Valores Mobiliários S.A., with crypto services shifting to the BBrasil entity once licensing is secured.

Looking ahead

Binance’s general manager for Brazil, Thiago Sarandy, has indicated the exchange hopes to restore the suspended products once it reaches a compliance agreement with the BCB. In the meantime, the company is maintaining dialogue with regulators and urging users to stay informed through official FAQs and updates. The broader regulatory environment remains fluid, with additional scrutiny from European authorities on Binance’s operational practices.

--- This article was prepared with AI assistance and reviewed for accuracy by the Unchained editorial team.