A new development shines on the horizon of the Brazilian crypto world. Latam Gateway, Binance’s proud partner, has just secured a coveted license to operate as a respected payment institution and electronic money issuer in the South American country.
Latam Gateway Strengthens Position in Crypto Market
Local media messages let it be known that on May 19, Latam Gateway, the dedicated payment provider for Binance in Brazil, received the blessing of the country’s central bank to serve as a payment institution and electronic money issuer. This is without a doubt a major milestone for the exchange giant as Brazil becomes marked as one of the most important global markets for Binance, as previously announced.
The role of Latam Gateway is invaluable for foreign companies looking to spread their wings in Brazil. They offer the opportunity to access the Brazilian real, and currently Binance is the only crypto client in the country. Other notable clients include renowned gaming companies such as Codashop, Moedaz, and Game Hollywood. The partnership between Binance and Latam Gateway dates back to June 2022, after the previous partnership between Binance and Capital in Brazil came to an end.
It’s no wonder Brazil is a magnet for crypto companies, given its impressive population of nearly 214 million people. In January, Binance and Mastercard joined forces to launch a prepaid crypto card that allows the Brazilian people to make purchases and pay bills using more than 14 crypto assets, with real-time conversion to fiat currency. Of course, cardholders must meet strict “Know Your Customer” (KYC) standards.
Coinbase Expands Operations While Binance Is Under The Magnifying Glass
Not only is Binance playing a bigger role in Brazil, but Coinbase is also expanding its activities in this promising country. Since March, this exchange has partnered with local payment providers to enable crypto purchases, deposits and withdrawals in the local currency. Coinbase has been operating in Brazil since 2021, when they established a technology hub to offer their valuable crypto services to Brazilian users.
Brazilian authorities keep a close eye on crypto companies. Rumors indicate that Binance is currently the focal point of research is because they are believed to have assisted clients in circumventing stop orders on investments in crypto derivatives.
The year 2020 saw the Brazilian Securities and Exchange Commission issue a stop order for crypto derivatives. Under local law, futures contracts are considered securities regardless of the nature of the underlying asset. Documents from the ongoing investigation show that Binance’s platform instructed Brazilian users to change their language settings so that they could access Binance’s Futures section.
It is not only in Brazil that the authorities keep the crypto exchange under a magnifying glass. Canadian and US securities regulators have also launched similar investigations into Binance, highlighting the growing international focus on this player in the crypto world.