Latam Gateway, payment provider for Binance in Brazil, granted a license by Brazil’s central bank

According to reports from local media, on May 19, the central bank of Brazil granted Latam Gateway, the payment provider for Binance in the country, a license to function as a payment institution and issuer of electronic money.

Latam Gateway, payment provider for Binance in Brazil, granted a license by Brazil’s central bank

According to reports from local media, on May 19, the central bank of Brazil granted Latam Gateway, the payment provider for Binance in the country, a license to function as a payment institution and issuer of electronic money. This development is significant as Brazil is one of Binance’s key markets worldwide.

Latam Gateway plays a crucial role in enabling foreign companies to operate in Brazil by providing convenient on/off ramps with the Brazilian real. Binance stands out as the sole cryptocurrency client in the country, while other notable clients include gaming-related companies like Codashop, Moedaz, and Game Hollywood.

Binance and Latam Gateway have been partners since June 2022, stepping in after the termination of Binance-Capitual’s collaboration in Brazil. The country’s sizable population of approximately 214 million people has attracted numerous crypto companies, including Binance. In January, Binance and Mastercard joined forces to introduce a prepaid crypto card in Brazil.

This card allows residents to make purchases and pay bills using over 14 crypto assets, with real-time conversion to fiat currency. Adherence to Know Your Customer (KYC) standards is mandatory for cardholders. Coinbase, another prominent exchange, has also expanded its operations in Brazil since March, partnering with local payment providers to facilitate crypto purchases and enable deposits and withdrawals in the local currency. Coinbase established a tech hub in the country in 2021 to offer crypto services to Brazilians.

Brazilian regulatory authorities have been actively monitoring cryptocurrency firms. Binance is reportedly under investigation for potentially aiding clients in evading a stop order on cryptocurrency derivatives investments. In 2020, the Brazilian Securities and Exchange Commission issued a stop order on crypto derivatives, categorizing futures contracts as securities under local law, regardless of the underlying assets’ nature.

Documents from the ongoing investigation reveal that Binance’s platform provided instructions to Brazilian users on changing their language settings to gain access to the Futures section. Furthermore, the SEC noted the availability of extensive Portuguese-language content without any restriction notice for Brazilian users. Similar investigations against Binance have been conducted by Canadian and American securities regulators.

To access more crypto news: cryptodataspace.com