Cryptocurrency exchange Mercado Bitcoin received a payment provider license from the Central Bank of Brazil on June 2, local media reported. Once licensed, the company will launch its fintech solution, MB Pay.
Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin, said: “The central bank's approval is a crucial step as it allows us to continue to expand our business and provide better services to our customers.”
As a payment institution, MB Pay can provide Brazilian users with specific digital banking services, such as digital fixed-income investments, staking, and other financial transactions, using encrypted assets held on exchanges. A debit card that provides users with crypto exits is expected to go live soon. Earlier, Guide Investimentos, a local traditional brokerage, also announced a partnership with Mercado Bitcoin to enter the digital asset market. Mercado Bitcoin's fintech launch was planned for 2021, but was delayed due to the regulatory app roval process. This development comes on the same day that Mercado Bitcoin was ordered to return over 2,182 BTC, worth $59.3 million at the time of writing back to a group of investors who claim co-founders and former executives withheld funds in a fabricated hack in 2013.
Strong demand for digital solutions and a population of nearly 214 million people have attracted cryptocurrency companies to the Latin American country. Binance previously listed Brazil as one of the largest markets in the world. Its local partner, Latam Gateway, also rece ived a payment provider license in the country on May 19. Other cryptocurrency exchanges licensed as payment providers in Brazil include Crypto.com and Bitso. Coinbase is also expanding its presence in the country. Since March, the US exchange has partnered with local payment providers to offer cryptocurrency pur chases and support deposits and withdrawals in local currencies.
