Binance provider in Brazil gets payment institution approval
Latam Gateway, the payment provider for Binance 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 to local media reports.
Brazil is among Binance’s top global markets, the exchange said in a previous announcement.
Latam Gateway helps foreign companies to operate in Brazil by providing on/off ramps with the Brazilian real. According to the company’s website, Binance is the only crypto client in the country. Other relevant clients include gaming-related 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 collaboration in the country.
A market with nearly 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 through real-time crypto-fiat conversion. Cardholders are required to comply with Know Your Customer (KYC) standards.
Related: Crypto adoption is booming, but not in the US or Europe — Bitcoin Builders 2023
Also expanding operations in the country is Coinbase. Since March, the exchange has partnered with local payment providers to offer crypto purchases, as well as enable deposits and withdrawals in the local currency. Coinbase has been in the country since 2021, when it established a tech hub to offer crypto services to Brazilians.
Brazil’s regulatory authorities are also paying attention to crypto firms. Binance is reportedly being investigated for allegedly helping clients evade a stop order on cryptocurrency derivatives investments.
In 2020, the Brazilian Securities and Exchange Commission issued a stop 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 probe, Binance’s platform displayed instructions for Brazilian users to change their language settings in order to access the Binance’s Futures section. Additionally, the SEC said there was extensive Portuguese-language content available without a restriction notice for Brazilian users. Canadian and American securities regulators have conducted similar investigations against the crypto exchange.
Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips