Binance provider in Brazil gets payment institution approval

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Brazil’s Binance payment provider, Latam Gateway, was granted a license to operate as a payment institution and e-money issuer by the country’s central bank on May 19. according to to local media coverage.

Brazil is one of the world’s top markets for Binance. Said in previous notice.

Latin America Gateway helps foreign companies to do business in Brazil by offering on/off ramps in Brazilian Reals. according to According to the company’s website, Binance is the only cryptocurrency client in the country. Other related clients include gaming companies such as Codashop, Moedaz and Game Hollywood.

Binance and Latam Gateway have been partners since June 2022 following the termination of Binance-Capitual’s partnership in the country.

A market of about 214 million people is attracting cryptocurrency companies to Brazil. In January, Binance and Mastercard partnered to launch prepaid crypto cards in the country, allowing residents to shop and pay bills in over 14 crypto assets through real-time crypto-to-fiat conversion. . Cardholders must comply with Know Your Customer (KYC) standards.

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Coinbase is also expanding its business in the country. Since March, the exchange has partnered with local payment providers to offer cryptocurrency purchases and also allows deposits and withdrawals in local currencies. Coinbase will expand to Brazil in 2021 and set up a tech hub to offer cryptocurrency services to Brazilians.

Brazilian regulators are also eyeing crypto companies. Binance is reportedly under investigation for allegedly helping clients bypass stop orders on crypto derivatives investments.

In 2020, the Brazilian Securities and Exchange Commission issued a trading halt order for cryptocurrency derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying asset.

Binance’s platform displayed instructions for Brazilian users to change their language settings to access Binance’s futures section, according to local law enforcement documents. Additionally, the SEC said there is extensive Portuguese-language content available to users in Brazil without restriction notice. Canadian and American securities regulators have conducted similar investigations into cryptocurrency exchanges.

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