Binance enters Brazil for good and creates its own CNPJ, this way it will have to report all the transactions of its Brazilian users to the Federal Revenue Service
Binance, one of the world’s largest exchanges of cryptomorphs, must report all Bitcoin and cryptomorph transactions of its Brazilian users to the Brazilian IRS.
This way, as well as the other national exchanges, Binance, which now has a CNPJ in Brazil, would be complying with the determinations of the Instrução Normativa 1888 (IN1888).
Data from the IRS show that Binance officially registered in Brazil with CNPJ 37.512.394/0001-77 under the name of B Fintech Servicos de Tecnologia LTDA.
On the board of partners and administrators counts the name of Mauricio Machado as administrator and the founder of Binance, Changpeng Zhao (CZ) as an individual resident abroad.
However, the company did not use its own CNAE for cryptomaniac companies, which is 6619-3/99, but sought registration under code 74.90-1-04 – Intermediation and agency activities of services and business in general, except real estate.
Binance
Thus, with its own CNPJ in Brazil, Binance would be obliged to comply with the Federal Revenue and report all transactions of its Brazilian users to act.
Aware of this, according to Ana Paula Rabello, lawyer and specialist in crypto, Binance would already be preparing its system to comply with the determinations of the IRS.
„In an exclusive conversation with the representative of Capitual in Brazil, Mr. Gustavo Rezende informed me that Binance would be adapting the IT sector to meet KYC in Brazil, and that all Brazilian customers will be reported, not only those who will operate in reais from now on (…) Binance in Brazil, registered under CNPJ 37.512.394/0001-77, will issue an official statement on this matter,“ he stated in his blog.
According to Rabello, the representative of Capitual, it would not be a choice of Binance to report or not data from its users to the IRS but a duty of the company when offering services in Brazil.
„There will be reporting to revenue, yes. We followed the community and we saw many people saying no, that IN does not cover Binance because it is abroad, but it is in Binance’s interest to officially offer several of its services in Brazil, so certainly there will be the report, starting this month. As we know, IN is not something you negotiate, you just comply“ said the company’s representative.
Normative Instruction
However, although Binance can now report 100% of its Brazilian users‘ transactions to the IRS, the fact is that the exchange was already subject to the regulator.
As the company offers its services to clients residing in Brazil, it is already obliged to comply with the IN 1888 determinations in the case of users who moved more than R$ 35 thousand per month.
In these cases she must inform the Federal Revenue about the transactions of these users.
It would therefore be nothing new for Binance to comply with the Federal Revenue Service’s stipulations as it is already obliged to do so.
„The Capitual will not do the reporting, since the IN requires that transfers involving cryptomoedas (in at least one of the parties) be reported, and the Capitual, by only processing the transactions in reais, does not have access to this data. The report will be made by an office representing Binance in Brazil, which has a CNPJ and access to the e-CAC of the RFB,“ said Gustavo Rezende of Capitual.
Binance and Capitual
At the beginning of September Binance announced a partnership with Capitual to allow Brazilian clients to deposit reais on the exchange.
According to the official blog of the brokerage house, customers who want to make real deposits need to complete the identity verification of the platform to unlock the function.
Then, in the deposits section of Binance, they must choose the bank transfer option to create a payment order that remains valid for 72 hours, later completing the operation through internet banking or the banking application of any Brazilian bank direct from the mobile phone.
The amount transferred must be exactly the same as the order, otherwise the values will be returned.
Once the deposit has been confirmed, Binance customers will be able to buy cryptomotes using their real funds. For now, BRL/BTC and BRL/USDT pairs are available, but the exchange promises to expand the offer soon.