On Friday, the Brazil-based payment platform Latam Gateway announced that the regulators green-lighted its license. The approval of the Latam permit allows the company to operate as a payment institution and electronic money service provider in Brazil.
A report from a local news site in Brazil reveals that Latam has been operating as a Binance partner. Per the report, Latam has provided the Brazilian with multiple off-and-on ramping services. Additionally, Latam has supported foreign companies to explore new opportunities in Brazil.
Latam Gateway Payment Receives Permit Approval
As of this writing, the Brazilian market ranks among the leading global markets for Binance. Based on the announcement Latam has been working with numerous firms in the gaming and entertainment sector.
In a previous report, Latam has worked closely with Codashop, Moedaz, and Game Hollywood, among other companies. However, the Latam collaboration with Binance ranks as the first business partnership the payment provider has entered into in the crypto sector.
In June 2022, the Binance team signed a memorandum of understanding (MoU) with Latam to improve digital payments. Initially, Binance had partnered with the Brazillian digital bank Capitual to expedite withdrawals and deposits within the region. After operating for two years, Binance terminated the contract with Capital for unknown reasons.
A source privy to the matter revealed that Binance plans to take legal action against Capitual for breaching the partnership agreement. On the contrary, Capitual intends to file a new lawsuit against Binance for contravening the central bank of Brazil regulations.
The presence of Binance in the Brazilian market has attracted most crypto investors to explore new opportunities in the region. A recent statistic shared by Brazil’s authority illustrated that the country has over 214 million people interested in digital assets.
Review of Crypto Adoption in Brazil
Notably, the race to dominate the vibrant crypto market motivated Binance to seek business partnerships with tech industrial heavyweights such as Mastercard. In January, Binance partnered with Mastercard to create a prepaid crypto card. The new card will allow Brazilians to purchase and settle their bills with at least 14 digital assets.
The card will operate under the supervision of the central bank of Brazil and will be issued by Dock, a payment platform in the region. During the launch, the Binance team adopted the existing regulations in Brazil that required the user to fully comply with the Know Your Customers (KYC) regulations.
Interestingly the suitability of the Brazilian market has attracted the largest crypto exchange in the US, Coinbase, to expand its operation to Brazil. It was reported that since March, the Coinbase team has been collaborating with the Brazilian payment providers to meet the customers’ ever-evolving needs.
Suitability of Brazil
According to Coinbase, the company plans to introduce crypto purchases and various depository and withdrawal products that can be traded using the Brazil fiat. In 2021 Coinbase launched a tech hub in Brazil that will provide users with crypto-related services and products.
Since the entrance of Coinbase and other thriving crypto firms to Brazil, the regulators have been keen on the operation of these firms.
Binance Violates Brazil Law
A few months ago, the regulators alleged that Binance contravened the crypto derivatives regulations. They observed that some of the services provided by Binance enable the user to bypass the stop order on crypto assets.
The regulators noted that the Binance team shared a report to guide the user to change the language settings to access the futures provided by the crypto exchange. A report submitted to the Brazilian police revealed that the guide provided by Binance was written in Portuguese.
Under the current Brazilian law, all futures crypto firms provide are classified as securities. The regulator’s submission was presented to the Brazilian Securities and exchange commission for further legal action.
Reportedly, the commission launched an investigation to identify the Binance staff who violated the regulation. Citing the Brazilian law, the suspect would be jailed for two years.