On May 19, Brazil’s financial sphere experienced a major shift, as the Central Bank of Brazil officially sanctioned Latam Gateway to serve as a payment entity and digital currency issuer. This marks a significant advancement for the adoption of cryptocurrencies in Brazil, a country that has emerged as a prominent market for Binance, the global crypto exchange.
Latam Gateway, well known for bolstering the operations of foreign enterprises within Brazil, has selected Binance as its exclusive crypto partner, further solidifying Binance’s position within this vibrant marketplace that is home to more than 214 million people.
#Binance 'in ortağı Latam Gateway, Brezilya'da ödeme kuruluşu ve elektronik para ihracı için lisans aldı.
— CRYPTO LEGEND 👑🟢🔥🚀 (@cryptolegennd) May 20, 2023
The Binance-Latam Gateway Alliance: A New Digital Front
Binance and Latam Gateway solidified their partnership in June 2022, succeeding the end of Binance’s previous collaboration with Capitual. Acting as a gateway for the Brazilian real to international corporations, Latam Gateway maintains significant relationships with notable gaming firms such as Game Hollywood, Codashop, and Moedaz.
Brazil Welcomes Cryptocurrency Giants
Major players in the crypto industry are making substantial inroads into Brazil’s digital finance landscape. Earlier this year, Binance and Mastercard made waves by unveiling a prepaid crypto card, empowering Brazilians to perform transactions and settle bills with more than 14 cryptocurrencies. In a commitment to transparency, all card users must comply with Know Your Customer (KYC) protocols.
In the meantime, Coinbase, another heavyweight in the crypto world, has been steadily growing its presence in Brazil. From March, the company has collaborated with local payment facilitators to simplify crypto transactions in the local currency. After establishing its presence in 2021, Coinbase has been leveraging its tech capabilities to make cryptocurrency services more accessible to Brazilians.
Binance Faces Regulatory Hurdles in Brazil
Although Brazil presents a wealth of opportunities, its crypto market comes with a complex set of regulatory hurdles. Binance, in particular, is under scrutiny for allegedly enabling its users to evade a ban on cryptocurrency derivatives investments. Since 2020, the Brazilian Securities and Exchange Commission’s mandate prohibits all crypto derivatives, classifying futures contracts as securities, irrespective of the underlying assets.
According to local reports, Binance allegedly advised Brazilian users to change their language settings to gain access to futures trading. Coupled with the SEC’s finding of widespread Portuguese content without restriction notifications for Brazilian users, this has led to heightened scrutiny, sparking similar inquiries from securities regulators in the U.S and Canada.
These developments underscore the need for clear regulations and transparency as Brazil continues to explore the crypto landscape. Such measures are crucial in realizing the full potential of this disruptive financial technology, propelling Brazil to the forefront of the global crypto economy.