Binance’s Dominance in Brazil Threatened by Vote on Crypto Rules

Binance Holdings Ltd.’s dominance over crypto trading in Brazil is under threat as Congress prepares to vote on a plan that would force the exchange to open a local unit and comply with a raft of new regulations.

With a market share of about 74%, Binance’s Brazil operation has an edge over local competitors partly because it offers lower fees. The proposal could eat away at that advantage by raising costs for the company, according to Bernardo Srur, a director at the industry trade association ABCripto.

“It can charge less because it doesn’t pay taxes in Brazil and doesn’t ...