On May 19, the financial sphere of Brazil underwent a big change, as the Central Bank of Brazil officially penalized Latam Gateway to serve as a payment entity and issuer of digital currency. This marks significant progress for cryptocurrency adoption in Brazil, a country that has become a prominent market for Binance, the global cryptocurrency exchange.
Latam Gateway, well known for boosting the operations of foreign companies within Brazil, has selected Binance as its exclusive crypto partner, further cementing Binance's position within this vibrant market that is home to more than 214 million people.
#Binance The Latam Gateway partner obtained a license for an electronic money issuance and payment institution in Brazil.
โ CRYPTO LEGEND ๐๐ข๐ฅ๐ (@cryptolegennd) May 20, 2023
Binance-Latam Gateway Alliance: a new digital front
Binance and Latam Gateway consolidated their partnership in June 2022, following the end of Binance's previous collaboration with Capitual. Acting as a gateway for the Brazilian real to international corporations, Latam Gateway maintains significant relationships with notable gaming firms such as Game Hollywood, Codashop, and Moedaz.
Brazil welcomes cryptocurrency giants
Major players in the cryptocurrency industry are making substantial inroads in the Brazilian digital finance landscape. Earlier this year, Binance and Mastercard caused a sensation by introducing a prepaid crypto card, which allows Brazilians to transact and settle bills with more than 14 cryptocurrencies. In a commitment to transparency, all cardholders must adhere to Know Your Customer (KYC) protocols.
Meanwhile, Coinbase, another heavyweight in the cryptocurrency world, has been steadily increasing its presence in Brazil. Since March, the company has collaborated with local payment facilitators to simplify crypto transactions in the local currency. After establishing its presence in 2021, Coinbase has been leveraging its technological capabilities to make cryptocurrency services more accessible to Brazilians.
Binance faces regulatory hurdles in Brazil
Although Brazil presents a wealth of opportunities, its crypto market presents a complex set of regulatory hurdles. Binance, in particular, is coming under scrutiny for allegedly allowing its users to circumvent a ban on investments in cryptocurrency derivatives. Since 2020, the Brazilian Securities and Exchange Commission mandate prohibits all crypto derivatives, classifying futures contracts as securities, regardless of the underlying assets.
According to local reports, Binance allegedly advised Brazilian users to change their language settings to gain access to futures trading. Coupled with the SEC's finding of pervasive Portuguese-language content without restriction notices for Brazilian users, this has led to increased scrutiny, prompting similar inquiries from securities regulators in the US and Canada.
These developments underscore the need for clear regulations and transparency as Brazil continues to explore the crypto landscape. Such measures are crucial to harness the full potential of this disruptive financial technology, propelling Brazil to the forefront of the global crypto-economy.
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