Latam Gateway, the payment provider for Binance in Brazil, has received a license from the country’s central bank to operate as a payment institution and electronic money issuer. This development, reported by local media, is significant as Brazil is one of Binance’s top global markets.
The partnership between Binance and Latam Gateway began in June 2022, following the termination of Binance-Capitual’s collaboration in Brazil.
Latam Gateway facilitates the entry of foreign companies into Brazil by providing on/off ramps with the Brazilian real. Binance is the only cryptocurrency client the company serves in the country. Other notable clients include gaming-related companies like Codashop, Moedaz, and Game Hollywood.
With a population of nearly 214 million people, Brazil has attracted several cryptocurrency companies. In January, Binance and Mastercard launched a prepaid crypto card in the country, enabling residents to purchase and pay bills using over 14 different cryptocurrencies through real-time crypto-fiat conversion. Users of the card are required to comply with Know Your Customer (KYC) standards.
Coinbase, another major exchange, has also expanded its operations in Brazil since March, partnering with local payment providers to offer crypto purchases and facilitate deposits and withdrawals in the local currency. Coinbase has been present in Brazil since 2021, when it established a tech hub to provide crypto services to Brazilians.
Brazilian regulatory authorities are closely monitoring the activities of cryptocurrency firms. Binance is reportedly under investigation for allegedly assisting clients in evading a stop order on cryptocurrency derivatives investments. In 2020, the Brazilian Securities and Exchange Commission issued a stop order on crypto derivatives, considering futures contracts as securities under local law, regardless of the nature of the underlying assets.
Investigation documents reveal that Binance’s platform instructed Brazilian users to change language settings to gain access to the Binance Futures section. Furthermore, the SEC noted the availability of extensive Portuguese-language content on the platform without any restriction notice for Brazilian users. Securities regulators have also conducted similar investigations against Binance in Canada and the United States.
Overall, these developments highlight the growing presence of cryptocurrency companies in Brazil, underscoring the increased scrutiny and regulatory attention they face.
