Latam Gateway, Binance's Trusted Partner, Authorized as Payment Facilitator in Brazil
Expansion in Promising Market Amid Regulatory Scrutiny for Binance
Mon, 22 May 2023, 07:16 am UTC
In a major development, Latam Gateway, a trusted associate of Binance, has recently acquired the green light to function as a payment facilitator and electronic currency issuer within Brazil's borders. This authorization, confirmed by the national bank on the 19th of May, has been revealed through various local news sources.
As confirmed in earlier declarations, Binance has always seen Brazil as one of its paramount markets globally. Offering seamless transitions between foreign and local operations, Latam Gateway aids international corporations in their Brazilian endeavors. This is accomplished by facilitating the conversion between international currencies and the Brazilian real. Presently, the exclusive cryptocurrency partner of Binance in Brazil, Latam Gateway also serves prominent gaming companies such as Game Hollywood, Codashop, and Moedaz.
This association between Binance and Latam Gateway was initiated in June 2022, after Binance terminated its alliance with Capitual within the country.
With a population of more than 213 million, Brazil has always been a promising terrain for cryptocurrency firms. In January, a joint venture between Binance and Mastercard saw the launch of a prepaid cryptocurrency card in the country. This allowed locals to indulge in various transactions and bill payments through 14 different digital currencies, converted in real-time to local currency, ensuring compliance with standard Know Your Customer regulations.
However, such rapid expansion has also drawn the gaze of Brazil's regulatory authorities. Recent reports suggest that Binance is under investigation for allegedly assisting clients in circumventing a prohibition order on cryptocurrency derivative investments.
Three years ago, the Brazilian Securities and Exchange Commission imposed a ban on cryptocurrency derivatives, deeming futures contracts as securities under the local legislation, regardless of the nature of the core assets. Documents from an ongoing local investigation highlight that Binance's platform offered guidance to Brazilian users on how to modify their language settings to gain access to Binance's Futures section. Additionally, the SEC pointed out abundant Portuguese content accessible without a limitation notice for local users. This situation echoes similar scrutiny Binance faced by securities regulators in Canada and the US.
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