Brazil Grants Payment Institution Approval to Binance, Leading Cryptocurrency Provider

“Binance’s Partner, Latam Gateway, Receives License to Operate as Payment Institution in Brazil”

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According to reports from local media, Latam Gateway, the payment provider for Binance in Brazil, has received approval from the country’s central bank to operate as a payment institution and electronic money issuer on May 19.

Binance has stated in a previous announcement that Brazil is one of its most important markets worldwide.

Latam Gateway assists foreign companies in operating within Brazil by offering services that allow them to easily convert between the Brazilian real and cryptocurrencies. The company’s website mentions that Binance is their exclusive cryptocurrency client in the country. Other notable clients include gaming-related companies like Codashop, Moedaz, and Game Hollywood.

Binance and Latam Gateway became partners in June 2022 after ending their collaboration with Binance-Capitual in Brazil.

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Brazil, a market with a population of almost 214 million people, has become an attractive destination for cryptocurrency companies. In January, Binance and Mastercard joined forces to introduce a prepaid crypto card in the country. This card enables residents to use over 14 different cryptocurrencies for purchases and bill payments, with the added convenience of real-time conversion between crypto and traditional fiat currency. To ensure security and regulatory compliance, cardholders are required to follow Know Your Customer (KYC) standards.

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Coinbase, another cryptocurrency exchange, is also expanding its presence in Brazil. Starting from March, Coinbase has formed partnerships with local payment providers to facilitate crypto purchases and enable transactions in the local currency. In 2021, Coinbase established a technology hub in the country to offer various cryptocurrency services to the Brazilian market.

Regulatory authorities in Brazil are closely monitoring crypto companies, including Binance. According to reports, Binance is under investigation for its alleged involvement in assisting clients to bypass a stop order related to investments in cryptocurrency derivatives.

In 2020, the Brazilian Securities and Exchange Commission (SEC) implemented a stop order on crypto derivatives. This means that futures contracts, regardless of the assets they are based on, are considered securities under Brazilian law.

Documents from the local investigation reveal that Binance’s platform provided instructions to Brazilian users on how to change their language settings to access the Futures section. The Brazilian Securities and Exchange Commission (SEC) also noted the presence of extensive Portuguese-language content on the platform without any restriction notice for Brazilian users. Similar investigations have been conducted by securities regulators in Canada and the United States regarding the crypto exchange.

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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