Binance’s Brazil Provider Gets Payment Institution Approval

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Latam Gateway, the payment provider for Binance in Brazil, obtained a license from the country’s central bank to operate as a payment institution and e-money issuer on May 19 according local media reports.

Brazil is one of the main global markets of Binance, the exchange said in a previous ad.

Latam Gateway helps foreign companies operate in Brazil by providing on-ramps and exits with the Brazilian Real. According on the company’s website, Binance is the only crypto client in the country. Other affected customers include gaming-related companies such as Codashop, Moedaz and Game Hollywood.

Binance and Latam Gateway have been partners since June 2022, following the end of the Binance-Capital collaboration in the country.

A market of nearly 214 million people has attracted crypto companies to Brazil. In January, Binance and Mastercard have teamed up to launch a prepaid crypto card in the country, allowing residents to make purchases and pay bills with over 14 crypto assets through real-time crypto-to-fiat conversion. Cardholders are required to comply with Know Your Customer (KYC) standards.

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Coinbase is also expanding into the country. Since March, the exchange partnered with local payment providers to offer crypto purchases, as well as to allow local currency deposits and withdrawals. Coinbase has been present in the country since 2021, when it created a technology hub to offer crypto services to Brazilians.

Brazilian regulatory authorities are also paying attention to crypto companies. Binance would be under investigation for allegedly helping clients evade a stop order on investments in cryptocurrency derivatives.

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In 2020, the Brazilian Securities and Exchange Commission issued a stop loss order on crypto derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying assets.

According to local investigation documents, Binance’s platform posted instructions for Brazilian users to change their language settings in order to access Binance’s Futures section. Additionally, the SEC said there is extensive Portuguese content available without restriction notices for Brazilian users. Canadian and US securities regulators have conducted similar investigations against the crypto exchange.

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