Brazilian company Latam Gateway, the Brazilian payment provider of the world's largest cryptocurrency exchange Binance, has received authorization from the Central Bank (BC) to operate as a payment institution issuing electronic money, according to local newspapers.
Headquartered in Maringá, Latam Gateway started serving Binance in June last year after the exchange parted ways with its former partner Capitual in the country.
At the time, the expiration of the deal led to Binance suspending real-denominated withdrawals and deposits via Pix on its platform.
According to the Central Bank, the electronic money issuer model allows for prepaid payment account management.
Brazil, where approximately 214 million people live, is attracting the attention of crypto companies. In January, Binance and Mastercard collaborated to launch a prepaid crypto card in the country, allowing residents to shop and pay bills with more than 14 crypto assets through real-time crypto-currency conversion.
Brazil's regulatory authorities have also paid close attention to crypto firms. In the country, Binance is reportedly being investigated for allegedly helping clients evade a stop order regarding their cryptocurrency derivatives investments.
The Brazilian Securities and Exchange Commission issued a stop order for crypto derivatives in 2020.
*Not investment advice.