Latam Gateway, Binance's payment provider in Brazil, received a license from the country's central bank to operate as a payment institution and e-money issuer on May 19. according to local media reports.
Brazil is among Binance's top global markets, the exchange saying in a previous ad.
Latam Gateway helps foreign companies to operate in Brazil by providing entry and exit ramps with Brazilian reais. According 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 completion of the Binance-Capitual collaboration in the country.
A market with almost 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 more than 14 crypto assets through real-time crypto-fiat conversion. Cardholders must adhere to Know Your Customer (KYC) standards.
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Coinbase is also expanding its operations in the country. 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 technology center to offer crypto services to Brazilians.
Regulatory authorities in Brazil are also paying attention to crypto companies. It is reported that Binance being investigated for allegedly helping clients evade a stop order on investments in cryptocurrency derivatives.
In 2020, the Brazilian Securities and Exchange Commission issued a suspension order for crypto derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying assets.
According to local investigation documents, the Binance platform displayed instructions for Brazilian users to change their language settings to access the Binance futures section. In addition, the SEC said that extensive Portuguese-language content was available without a restriction notice for Brazilian users. Canadian and US securities regulators have conducted similar investigations against the crypto exchange.
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