Latam Gateway, Binance’s payment provider in Brazil, has earned a license from the Central Bank of Brazil to serve as a payment institution and electronic money issuer in the country. With Brazil as one of Binance’s biggest markets, this approval represents a move in the right direction for one of crypto’s major players.
Latam Gateway Gains Central Bank Approval In Brazil
On Friday, May 19, a wave of positivity rippled through the Brazilian financial industry as Latam Gateway was granted a license to operate as a payment institution and electronic currency issuer. This was also considered good news for the cryptocurrency sector, considering the relationship between Latam Gateway and the world’s largest crypto exchange, Binance.
Binance Exchange and Latam Gateway first became partners in June 2022, following the end of the former’s collaborative alliance with Capitual, another payment provider in Brazil. According to Binance, the end of its partnership with Capitual caused a temporary suspension of withdrawals and deposits in local currency on its platform. However, the exchange soon resumed these activities once it struck a new deal with another payment provider.
Latam Gateway, headquartered in Maringa, serves foreign organizations in Brazil by providing payment solutions through the local currency, the Brazilian Real. According to the company’s website, Binance is the only crypto client in its books, bolstering the exchange’s stake in an expanding crypto market of 214 million Brazilians.
It is important to mention that other foreign organizations in partnership with Latam Gateway will benefit from this license approval. These businesses include gaming-related companies Codashop, Game Hollywood, and Moedaz.
Brazil’s Burgeoning Cryptocurrency Space
The growth of cryptocurrency in Brazil is quite apparent, and the role of cryptocurrency exchanges in this expansion cannot be denied. These crypto organizations are moving at an incredible pace in the country – and the whole South American region.
For instance, at the end of January this year, Binance announced a collaboration with Mastercard, launching a prepaid crypto card in the country. This significant partnership allows Brazilians to transact and pay their bills with more than a dozen crypto assets.
Coinbase, the world’s second-biggest exchange, has also made conscious efforts toward crypto expansion in Brazil. Since March, the crypto giant has partnered with numerous local payment providers to promote crypto transactions in the domestic currency.
Indeed, the crypto space in Brazil is undergoing a tremendous expansion phase. However, there have been some issues with compliance and regulation. Notably, Binance is being investigated by Brazilian authorities for allegedly assisting customers to get around a ban on crypto derivatives.
Total Crypto Market Cap at $1.096 trillion | Source: Total Crypto Market Cap chart from TradingView