The Central Bank of Brazil has authorised Binance’s Brazilian payment processor, Latam Gateway, to operate as a payment institution and electronic money issuer.
This is good news for Binance, a prominent participant in the cryptocurrency industry since Brazil is one of its most important markets.
When Latam Gateway received its authorization to function as a payment institution and electronic currency issuer on Friday, May 19, it sent a wave of optimism through Brazil’s financial sector. The partnership between Latam Gateway and Binance, the biggest cryptocurrency exchange in the world, was also seen as positive news for the cryptocurrency industry.
Binance claims that the temporary halt in local currency withdrawals and deposits was triggered by the termination of its collaboration with Capitual. After negotiating a new payment processing agreement the exchange quickly resumed its previous operations.
Founded in Maringa, Latam Gateway offers payment options in Brazilian Real currency for international businesses operating in Brazil. Binance is the sole cryptocurrency client listed on the company’s website, giving it a leg up in Brazil’s growing crypto market of 214 million people.
Not only will Latam Gateway gain from this licence approval, but so will other foreign organisations who work with Latam Gateway. Codashop, Game Hollywood, and Moedaz are just a few of the firms in this category that target gamers.
There is no denying the significant impact crypto exchanges have played in the meteoric rise of cryptocurrency in Brazil. These crypto organisations are expanding at a dizzying rate throughout the nation and across South America.
For instance, Binance announced a partnership with Mastercard at the end of January, releasing a prepaid crypto card in the nation. More than a dozen different cryptocurrencies may now be used for purchases and bill payments in Brazil thanks to new cooperation.
The world’s second-largest cryptocurrency exchange, Coinbase, has also made coordinated efforts to grow its presence in Brazil. Since March, the crypto giant has worked with a number of domestic payment processors to boost the use of cryptocurrency for purchases.
As a matter of fact, Brazil’s crypto industry is in the midst of a period of rapid growth. Notably, Brazilian authorities are looking into Binance to reportedly help consumers avoid a prohibition on crypto derivatives.
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