Is Binance a National Cryptocurrency Broker or Not?

Faced with persistent doubts about the legal status of Binance, the world’s largest cryptocurrency exchange, in Brazil, the website Declarando Bitcoin invited Tatiane Praxedes, a lawyer specialized in tax law and cryptocurrencies, to clarify the situation.

Praxedes’ analysis provides valuable insights into Binance’s operations in the country, especially following the implementation of RFB Normative Instruction No. 1,888/2019, which imposes the mandatory declaration of transactions involving cryptocurrencies.

Praxedes based his analysis on the terms of use published on the Binance website. She points out that while there is no definitive answer about Binance’s legal presence in Brazil, several clauses in the terms of use offer clues.

Among them is the responsibility of users to comply with local laws, which implies an operational distance for Binance from Brazilian laws. Additionally, conversions to fiat currency are performed through local partner traders, and not directly by Binance.

Particularly telling are the clauses that refer to Brazilian legislation and regulations and the chosen forum in the district of São Paulo. Although they point to a connection with Brazil, Praxedes states that are not sufficient to classify Binance as a legally incorporated entity in the country.

She interprets that the Binance has an operational presence in BrazilBut not as a formal national entity.

Statements from Binance’s Managing Director in Brazil

The analysis takes on a new dimension with the statements of Guilherme Haddad Nazar, Managing Director of Binance in Brazil, during his testimony at the CPI das Pirâmides Financeiras.

Nazar outlined Binance’s evolution in Brazil, including offering a platform in Portuguese, local customer support, an office in São Paulo and various sponsorships. He clarified that Brazilian companies linked to Binance perform administrative functions and do not form the operational core of the exchange in Brazil.

A crucial point addressed by Nazar was Binance’s position regarding tax obligations in Brazil. He indicated that Binance is not implementing the Cryptoasset Declaration, as required by RFB Normative Instruction No. 1,888/2019, and transferring this responsibility to Brazilian users.

This strengthens Praxedes’ position Binance operates in Brazil under an international modelwithout a formal constitution in the country.

Praxedes concludes that based on the available information, Binance cannot be considered an exchange formally established in Brazil.

Source: Live Coins