Brazil-based Binance's payment provider, Latam Gateway, received a license from the country's central bank on May 19 to operate as a payment institution and e-money issuer, local media reported.
Brazil is one of Binance's key global markets, the exchange said in a previous announcement.
Latam Gateway helps foreign companies do business in Brazil by providing access to the Brazilian Real in and out of the country. According to the company's website, Binance is the only cryptocurrency 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 the Binance-Capitual partnership in the country.
With a population of nearly 214 million, the Brazilian market has attracted crypto companies to the country. In January, Binance and Mastercard teamed up to launch a prepaid crypto card in the country, allowing residents to make purchases and pay bills using more than 14 crypto assets through real-time crypto-to-fiat conversion. Cardholders must adhere to "know your customer" standards. Coinbase is also expanding its presence in the country. Since March, the exchange has partnered with local payment providers to offer cryptocurrency purchases and sup port deposits and withdrawals in local currencies. Since 2021, Coinbase has been building a technology center in the country to provide cryptocurrency services to Brazilians.
Brazilian regulators are also eyeing crypto companies. Binance is reportedly under investigation for allegedly helping customers evade a cease-and-dest order for investing in cryptocurrency derivatives. In 2020, the Brazilian Securities and Exchange Commission issued a ce ase and desist order on cryptocurrency derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying asset. Binance's platform showed instructions for Brazilian users to change their language settings to access the Binance Futures platform, according to local investigative documents .In addition, Brazilian users can get a lot of Portuguese-language content without restriction notifications, the agency said. Canadian and US securities regulators have launched similar investigations into cryptocurrency exchanges.
