Coinbase has asked for local authorisation in Brazil to continue operating its cryptocurrency services.

On Oct. 29, Cointelegraph reported that Coinbase submitted an application for a virtual asset service provider (VASP) licence to the central bank a day ahead of Brazil's filing deadline.

The application follows Brazilian authorities' introduction of a new regulatory framework. The new requirements cover governance, customer asset protection and compliance systems. Existing VASPs can continue operating during the review period under transitional rules if they apply for a licence by the end of October.

Coinbase plans to keep its services running in Brazil after completing the application by the deadline. The filing goes beyond a simple administrative process and carries the meaning of being a requirement for continuing local operations.

It also reaffirmed plans to expand its business in Brazil beyond cryptocurrency trading. Coinbase plans to apply its "Everything Exchange" strategy locally by combining foreign exchange and payments with its crypto services.

Other exchanges are also responding to the new rules. Binance also applied for a licence on Oct. 23 and restricted some services in Brazil, including crypto loans and margin trading, to meet the new requirements. It also delisted 22 cryptocurrencies.

The impact of the new rules is being reflected not only in whether exchanges secure licences but also in the scope of services each offers. That is because existing operators, like Binance, must adjust how they operate to meet regulatory requirements. Coinbase will also have to meet separate requirements for each service if it wants to expand into foreign exchange and payments.

Still, applying by the deadline allows operations to continue during the review period but does not mean final approval has been secured. The key issue will be whether the central bank review recognises that the new regulatory requirements have been met. As foreign exchange and payments businesses also require separate authorisation, maintaining existing services and expanding into new ones will each have to go through their respective procedures.