Central Bank Grants Latam Gateway License

Local media outlets reported on May 19 that Latam Gateway, the payment provider for Binance in Brazil, was granted a license by the country’s central bank to operate as a payment institution and electronic money issuer.

Brazil is one of Binance’s top global markets, according to a previous announcement by the exchange.

Latam Gateway facilitates the operations of foreign companies in Brazil by providing on/off ramps for the Brazilian real.

The company’s website indicates that Binance is the only crypto client in the country. Other relevant clients include Codashop, Moedaz, and Game Hollywood, all gaming-related businesses.

Binance and Latam Gateway have been partners in the country since June 2022, when the Binance-Capitual partnership ended.

The nearly 214 million-person market in Brazil has attracted crypto companies.

In January, Binance and Mastercard collaborated to launch a prepaid crypto card in the country, enabling residents to make purchases and pay bills with more than 14 cryptocurrencies via real-time crypto-fiat conversion.

Cardholders must comply with Know Your Customer (KYC) requirements.

Coinbase is also expanding its operations in the country. Since March, the exchange has partnered with local payment processors to enable purchases of cryptocurrencies and deposits and withdrawals in the local currency.

Since 2021, when it established a tech hub to offer crypto services to Brazilians, Coinbase has been present in the country.

Additionally, Brazil’s regulatory authorities are paying attention to crypto companies.

Reportedly, Binance is being investigated for allegedly assisting clients in circumventing a stop order on cryptocurrency derivatives investments.

The Brazilian Securities and Exchange Commission banned crypto derivatives in 2020. Under local law, futures contracts are considered securities regardless of the nature of the underlying assets.

Documents from the local investigation indicate that Binance’s platform instructed Brazilian users to change their language settings to access the Futures section.

In addition, the SEC stated that extensive Portuguese-language content was accessible to Brazilian users without a restriction notice.

Canadian and American securities regulators have similarly investigated the cryptocurrency exchange.