Latam Gateway, a prominent payment provider for Binance in Brazil, has recently been granted a license to operate as a payment institution and electronic money issuer by Brazil’s central bank, according to local media reports. With a population of nearly 214 million, Brazil is one of Binance’s top global markets, and the emergence of Latam Gateway has proven to be advantageous for both the exchange and the country.
The payment provider, which helps foreign companies operate in Brazil through on/off ramps with the Brazilian real, currently lists Binance as its only cryptocurrency client. The collaboration began in June 2022 after Binance parted ways with its former partner, Capitual. Other noteworthy clients of Latam Gateway include gaming-related companies such as Codashop, Moedaz, and Game Hollywood.
In January, Binance and Mastercard launched a prepaid crypto card in Brazil, enabling residents to make purchases and pay bills using over 14 crypto assets through real-time crypto-fiat conversion. However, cardholders must adhere to Know Your Customer (KYC) standards to maintain compliance.
Meanwhile, Coinbase, another major exchange, has been expanding its operations in Brazil since March. The company offers crypto purchase options, as well as local currency deposits and withdrawals through its partnerships with local payment providers.
While these developments highlight the growing acceptance of cryptocurrencies in Brazil, it’s important to note that the country’s regulatory authorities are also keeping a watchful eye on crypto firms. Binance is reportedly being investigated for allegedly assisting clients in evading a stop order on cryptocurrency derivatives investments. The Brazilian Securities and Exchange Commission (SEC) issued this order in 2020; under local law, futures contracts are considered securities, regardless of the nature of their underlying assets.
To further scrutinize Binance, the SEC discovered that the exchange provided instructions for Brazilian users to bypass language settings and access Binance’s Futures section. Additionally, the regulator observed readily available Portuguese-language content without restriction notices for Brazilian users. This has raised concerns among both local and international investors, as Binance now faces similar investigations by Canadian and American securities regulators.
The dynamic landscape of cryptocurrency regulations in Brazil provides numerous opportunities for growth, yet the country also faces challenges in implementing appropriate oversight and consumer protection measures. The success of companies like Latam Gateway and Binance, along with increased regulatory scrutiny, suggests Brazil is moving toward a more mature and responsible cryptocurrency environment. However, as this market continues to develop, industry stakeholders will need to strike a delicate balance between fostering innovation and maintaining strict compliance standards.
Source: Cointelegraph
