Binance provider in Brazil gets payment institution approval

Binance provider in Brazil gets payment institution approval

Local media in Brazil reported on May 19 that Binance’s Brazilian payment processor, Latam Gateway, has received a license from the country’s central bank to function as a payment institution and electronic money issuer.
Binance previously announced that Brazil is one of its top global markets.
Latam Gateway facilitates the operations of foreign businesses in Brazil by offering entry and exit points for the Brazilian real. Binance is the only crypto client in the country, per the company’s website. Codashop, Moedaz, and Game Hollywood are just a few examples of other gaming-related firms who are clients.

Read Also: Brazil Tax Authority Sees Record Registrations With Companies Holding Crypto

Since June 2022, when Binance and Binance-Capitual’s partnership in the country officially ended, Binance and Latam Gateway have worked together.
Brazil’s massive market of 214 million people has attracted cryptocurrency startups. To facilitate the use of more than 14 different cryptocurrencies for everyday transactions including bill payment, Binance and Mastercard launched a prepaid crypto card in the country in January. All cardholders must meet Know Your Customer (KYC) requirements.
Coinbase is also growing its presence in the country. Since March, the exchange has collaborated with regional payment processors to support local currency deposits and withdrawals for cryptocurrency purchases. Coinbase has been serving Brazilians since 2021, when it set a shop in a major technological cluster.

Cryptocurrency companies have also caught the eye of Brazil’s regulators. Allegedly aiding customers in circumventing a stop order on bitcoin derivatives investments, Binance is apparently the subject of an investigation.

Read Also: FTX collapse won’t impact everyday use of crypto in Brazil Transfero CEO

A ban on crypto derivatives is set to go into effect in Brazil by the Brazilian Securities and Exchange Commission in 2020. Regardless of the underlying assets, futures contracts are deemed securities under local law.

Binance’s site reportedly informed Brazilian consumers that they needed to switch their language settings in order to access Binance’s Futures section, as evidenced by papers from the local investigation. The SEC also noted that many resources written in Portuguese were freely accessible to Brazilians. The crypto exchange has been the subject of parallel investigations by Canadian and American securities authorities.

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