Latam Gateway, the payment provider for Binance in Brazil, received a license from the country’s central bank to operate as a payment institution and issuer of electronic money on May 19, according to local media reports.
Brazil is among the largest global markets on Binance, which is the stock exchange He said in a previous announcement.
Latam Gateway helps foreign companies operate in Brazil by providing on/off ramps in Brazilian Reals. according According to the company’s website, Binance is the only crypto client in the country. Other related clients include game-related companies such as Codashop, Moedaz, and Game Hollywood.
Binance and Latam Gateway have been partners since June 2022, after terminating the Binance-Capitual collaboration in the country.
A market of approximately 214 million people has attracted crypto companies to Brazil. In January, Binance and Mastercard teamed up to launch a prepaid crypto card in the country, allowing residents to make purchases and bill payments on more than 14 crypto assets through real-time digital currency conversion. Cardholders are required to comply with Know Your Customer (KYC) standards.
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Also expanding operations in the country is Coinbase. Since March, the exchange has partnered with local payment providers to offer cryptocurrency purchases, as well as enable local currency deposits and withdrawals. Coinbase has been operating in the country since 2021, when it set up a tech hub to provide crypto services to Brazilians.
Brazilian regulatory authorities are also interested in crypto companies. Binance is reportedly under investigation for allegedly helping clients evade a halt order for cryptocurrency derivatives investments.
In 2020, the Brazilian Securities and Exchange Commission issued a stop order on cryptocurrency derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying asset.
According to the local investigation documents, Binance offered instructions to Brazilian users to change their language settings in order to access Binance’s Futures section. In addition, the SEC said there is extensive Portuguese-language content available without restriction notice to Brazilian users. Canadian and US securities regulators have conducted similar investigations against the cryptocurrency exchange.
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