Coinbase Seeking Brazilian crypto licensing; services are not expected to be interrupted.

Coinbase has obtained authorization to operate as an encryption service provider locally before the deadline for license applications on Friday in Brazil.

According to a statement shared by Coinbase with Cointelegraph, this cryptocurrency exchange, headquartered in the United States, submitted an application to the Central Bank of Brazil on Wednesday in accordance with the framework of Brazil's virtual asset service providers ( VASP ).

This application is aimed at maintaining Coinbase's existing business in Brazil. Meanwhile, the Brazilian Central Bank is introducing new requirements that cover governance, customer asset protection, and compliance, among other aspects.

"We expect that the application review will not require us to suspend our existing services," a spokesperson from Coinbase told Cointelegraph.

Coinbase also reiterated its plan to bring its “Everything Exchange” strategy to Brazil, and in addition to encryption services, it may expand into foreign exchange and payment businesses in the future. However, these businesses require separate regulatory authorization.

Coinbase has joined the ranks of Binance. Binance applied for authorization on October 23rd, but in order to comply with the new regulations, it has restricted crypto lending, margin trading, and other services in Brazil, and has also removed 22 types of crypto assets from its platform.

Brazil requires existing crypto service providers to apply for authorization by the end of October in order to continue operating under the transitional arrangements. Existing service providers that submit their applications on time can continue operating during the application review period.

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