Binance provider receives payment institution approval in Brazil

Binance’s payment provider LATAM Gateway in Brazil has been granted a license by the country’s central bank to operate as a payment institution and electronic money issuer on May 19. According For local media reports.

Brazil is one of Binance’s top global markets, the exchange Said in the previous announcement.

LATAM Gateway helps foreign companies operate in Brazil by providing an on/off ramp with the Brazilian Real. According On the company’s website, Binance is the only crypto client in the country. Other relevant customers include gaming-related companies such as Codeshop, Moedz, and Game Hollywood.

Binance and Latam Gateway have been partners since June 2022, following the end of the Binance-Capital collaboration in the country.

A market of around 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 pay bills with over 14 crypto assets via real-time crypto-fiat conversion. Cardholders are required to comply with Know Your Customer (KYC) norms.

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Coinbase is also expanding operations in the country. Since March, the exchange has partnered with local payment providers to offer crypto purchases as well as enable deposits and withdrawals in local currency. Coinbase has been in the country since 2021, when it established a tech hub to offer crypto services to Brazilians.

Brazilian regulatory authorities are also paying attention to crypto firms. Binance is under investigation for allegedly helping customers avoid stop orders on cryptocurrency derivatives investments.

In 2020, the Brazilian Securities and Exchange Commission issued a restraining order on crypto derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying assets.

According to documents from the local investigation, Binance’s platform displayed instructions for Brazilian users to change their language settings in order to access the futures section of Binance. Additionally, the SEC stated that extensive Portuguese-language content was available to users in Brazil without restriction notices. Canadian and US securities regulators have conducted similar investigations against crypto exchanges.

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