Brazil-based Binance provider gets payment institution approval
Brazil's market of over 214 million people has attracted bitcoin companies. Binance and Mastercard launched a prepaid cryptocurrency card in the country in January, allowing users to pay bills and make transactions using more than 14 cryptocurrencies through real-time crypto-fiat conversion.
According to local media sources, the central bank of Brazil has authorized Latam Gateway, Binance's payment processor in Brazil, to function as an electronic money issuer and payment institution as of May 19. The exchange stated in a recent statement that one of its top international markets is Brazil.
Latam Gateway offers on/off ramps with the Brazilian real to assist foreign businesses operating in Brazil. The company's website states that Binance is the sole cryptocurrency user in the nation. Gaming-related businesses such as Codashop, Moedaz, and Game Hollywood are examples of more pertinent clientele.
Payment institutions in Brazil approve the Brazilian supplier of Binance
Local media reports that as of May 19, the Brazilian central bank has granted Latam Gateway, Binance's Brazilian payment processor, permission to operate as an electronic money issuer and payment institution. In a recent announcement, the exchange listed Brazil as one of its top overseas markets.
For the benefit of international companies doing business in Brazil, Latam Gateway provides on/off ramps with the Brazilian real. According to the company's website, Binance is the only cryptocurrency user in the country. Clientele from gaming-related companies like Codashop, Moedaz, and Game Hollywood are examples of those who are more relevant.
Since June 2022, when Binance-Capitual's partnership in the nation came to an end, Binance and Latam Gateway have been partners.
Brazil has drawn cryptocurrency firms due to its approximately 214 million-person market. A prepaid crypto card was introduced in January by Binance and Mastercard in the nation, enabling users to make purchases and pay bills using more than 14 cryptocurrencies through real-time crypto-fiat conversion. Cardholders must adhere to Know Your Customer (KYC) requirements.
Coinbase is also increasing its business in the nation. Since March, the exchange has collaborated with regional payment processors to support cryptocurrency purchases as well as local currency deposits and withdrawals. Since establishing a tech cluster in Brazil in 2021 to provide Brazilians with cryptocurrency services, Coinbase has been present there.
The regulatory agencies in Brazil are also keeping an eye on cryptocurrency businesses. According to reports, Binance is under investigation for allegedly assisting clients in avoiding a stop order on investments in bitcoin derivatives.
The Brazilian Securities and Exchange Commission put a stop on cryptocurrency derivatives in 2020. Regardless of the kind of the underlying assets, futures contracts are regarded as securities under local legislation.
In order to access the Futures portion of Binance, Brazilian users had to adjust their language preferences, according to papers from the local investigation. The SEC also noted that Brazilian customers may access a substantial amount of Portuguese-language information without receiving a restriction notice. Securities regulators in both Canada and the United States have looked into the cryptocurrency exchange.
Let us see how this action affects future crypto regulation.
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