Leading cryptocurrency exchange Binance announced last week that it will withdraw from the Canadian market, citing “new rules”. In a hot development, Brazil’s central bank is licensing Binance’s payments provider in the region.
Brazil gives the green light to Binance’s partner
The Brazilian central bank has licensed Binance’s regional payments provider, Latam Gateway, to operate as a payment institution and issuer of electronic money.
Latam Gateway helps foreign companies operate in Brazil by providing payment solutions in Brazilian real. According to the company’s website, Binance is the only crypto client in the country. Other interested clients include game-related companies such as Codashop, Moedaz, and Game Hollywood.
The Binance and Latam Gateway partnership has been running since June 2022, when Binance-Capital’s cooperation in the country ended. The leading exchange said in a recent report that Brazil is among its largest global markets.
This market, which has approximately 214 million people, attracts crypto companies in particular. Meanwhile, in January, Binance and Mastercard teamed up to launch a prepaid crypto card in the country that allows residents to make purchases and pay their bills with over 14 cryptocurrencies via real-time crypto-fiat conversion.
Coinbase is also expanding into the Brazilian market
Since March, the exchange has partnered with local payment providers to offer crypto purchases. Coinbase has been operating in the country since 2021, when it established a technology hub for crypto services to Brazilians.
Brazil’s regulatory authorities are also keeping an eye on crypto firms. Binance is reportedly being investigated for allegedly helping clients evade a stop order in cryptocurrency derivatives investments.
JUST IN🇧🇷 Binance under investigation by Federal Police in Brazil for "alleged financial crimes" – Globo 🤔 pic.twitter.com/EsdDKMpB86
— Radar🚨 (@RadarHits) April 20, 2023
In 2020, the Brazilian Securities and Exchange Commission issued a stop order for crypto derivatives. Futures contracts are considered securities under local law, regardless of the nature of the underlying assets.
According to documents from local research, the Binance platform showed Brazilian users instructions to change their language settings to access Binance’s Futures section. Additionally, the SEC said it has extensive Portuguese content for Brazilian users with no restriction notices. Canadian and American securities regulators have conducted similar investigations against the crypto exchange.
Binance Australia banned by Westpac
The global crypto company has relationships at varying distances from country to country. Recently, Binance’s Australian arm said that wire transfer withdrawals will also be affected. cryptocoin.com As we reported, Binance suspended AUD transactions on May 18. In the latest development, Westpac effectively prohibits clients from trading specifically with Binance.
