Latam Gateway, the payment provider for Binance in Brazil, received on 19 May a licence from the country’s central bank to operate as a payment institution and e-money issuer, according to local media reports.
Brazil is among Binance’s top global markets.
What Latam Gateway Does?
Latam Gateway helps foreign companies doing business in Brazil by providing entry and exit ramps for Brazilian, Real.
According to the company’s website, Binance is its only client in the country that is active in cryptocurrencies.
Its other relevant clients are companies related to the gaming industry, such as Codashop, Moedaz and Game Hollywood.
Binance and Latam Gateway have been partners since June 2022, following the termination of Binance’s partnership with Capitual.
Brazil’s relationship with cryptocurrencies
The Brazilian market, with nearly 214 million people, has been attracting cryptocurrency companies.
In January, Binance and Mastercard partnered to launch a prepaid cryptocurrency card in the country, allowing residents to make purchases and pay bills with more than 14 cryptocurrency assets by converting cryptocurrencies into national currencies in real time.
Cardholders must comply with Know Your Customer standards.
Coinbase in Brazil too
Coinbase is also expanding to Brazil. Since March, the exchange has been working with local payment providers to offer cryptocurrency purchases and to allow deposits and withdrawals in the local currency.
Coinbase has been in the country since 2021, when it established a tech hub offering cryptocurrency services to Brazilians.
The Brazilian “interest” in cryptocurrency companies
Brazilian regulators are paying extra attention to cryptocurrency companies. Binance is reportedly being investigated because there is an allegation that it helped customers avoid a cease-and-desist order for investing in cryptocurrency derivatives.
In 2020, the Brazilian Securities and Exchange Commission issued a cease-and-desist order for cryptocurrency derivatives. Futures are considered securities under local law, regardless of the nature of the underlying assets.
According to documents from the local investigation, Binance’s platform instructed Brazilian users to change their language settings to access the Binance Futures platform.
In addition, the authority said that extensive Portuguese-language content was available, without a restriction notice, to Brazilian users.
Securities regulators in Canada and the United States have conducted similar investigations against Binance.
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