Bitrabo Editorial
Latam Gateway, Binance’s payment provider in Brazil, has been granted a license by the Central Bank of Brazil to act as a payment institution and issue electronic money in the country. This approval is a positive development for one of the major players in the cryptocurrency sector, particularly as Brazil is one of Binance’s largest markets.
Latam Gateway Gains Approval from the Central Bank of Brazil
On Friday, May 19, the Brazilian financial industry was pleased to learn that Latam Gateway had been licensed to operate as a payment institution and issue electronic currency. This was also good news for the cryptocurrency industry, given Latam Gateway’s relationship with Binance, the world’s largest cryptocurrency exchange.
The two companies first became partners in June 2022, following the discontinuation of Binance’s partnership with another payment provider, Capitual. According to Binance, the end of its collaboration with Capitual temporarily halted withdrawals and deposits in local currency on its platform. Once a new deal was reached with another payment provider, however, the exchange quickly resumed these activities.
Based in Maringa, Latam Gateway provides payment solutions through the Brazilian Real, the local currency, to foreign companies operating in Brazil. According to the company’s website, Binance is its only cryptocurrency client, strengthening the exchange’s position in a booming cryptocurrency market of 214 million Brazilians.
It’s worth noting that other foreign businesses partnered with Latam Gateway will also benefit from this license approval. Codashop, Game Hollywood, and Moedaz, all gaming-related companies, are among these businesses.
Brazil’s Growing Cryptocurrency Industry
The growth of cryptocurrency in Brazil is evident, and the contribution of cryptocurrency exchanges to this expansion cannot be ignored. These cryptocurrency organizations are swiftly making their mark in the country and the entire South American region.
For instance, at the end of January this year, Binance collaborated with Mastercard to launch a prepaid cryptocurrency card in Brazil, enabling Brazilians to transact and pay bills using over a dozen cryptocurrencies.
The world’s second-largest exchange, Coinbase, has also made deliberate efforts to promote cryptocurrency transactions in the Brazilian domestic currency by partnering with various local payment providers since March.
Although the cryptocurrency space in Brazil is experiencing tremendous growth, there have been regulatory and compliance concerns. Brazilian authorities are investigating Binance for allegedly aiding customers in bypassing a ban on cryptocurrency derivatives.
Total Crypto Market Cap at $1.096 trillion | Source: Total Crypto Market Cap chart from TradingView
-Featured image from Binance, chart from TradingView