Mercado Bitcoin Obtains Payment Institution License in Brazil

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Latin America’s largest crypto exchange, MercadoBitcoin.com, has obtained a payment institution license from Brazil’s Central Bank, the company announced on Friday.

The license allows the company to continue offering regulated fiat wallet services in the country under the status of e-money issuer. The green light also allows Mercado Bitcoin to facilitate payment transactions and offer e-money services that comply with regulatory requirements set by the central bank.

“The central bank’s approval is an important milestone as it allows us to continue with our business expansion plans to provide an even more comprehensive experience for our customers,” Roberto Dagnoni, CEO of Mercado Bitcoin, said in a statement. .

Mercado Pago, said to be the largest online payment platform in Latin America, initially launched its crypto-trading service in December 2021 in Brazil. Additionally, in November 2022, it entered the Mexican market, where it says the first month of operation attracted up to 150,000 users to the app.

Today, Mercado Pago is looking for a similar boost in Chile as the e-commerce platform continues its gradual rollout in what company president Osvaldo Gimenez calls aggressive growth.

This step comes shortly after Binances’ payment provider in Brazil, Latam Gateway, was granted a similar license to operate as a payment institution and e-money issuer. The company serves as a facilitator for foreign companies looking to operate in the country by providing access and exit services for the local currency.

Earlier in September, Binance suspended Brazilian real deposits and withdrawals through the government payment system Pix. The payment freeze coincided with the end of a deadline imposed by Brazil’s central bank on Pix’s suppliers to implement new know-your-customer requirements.

Brazil’s sizable market of nearly 214 million people has become an attractive destination for cryptocurrency companies. Coinbase is also expanding into the country. Earlier in March, major US exchanges entered into partnerships with local payment providers to facilitate crypto purchases and allow funds to be deposited and withdrawn in the local currency.

Brazilians have not missed the cryptocurrency trend and the country has been a hive of activity related to crypto assets. In Latin America, the nation was the leader in cryptocurrency on both the regulatory side and the development side. As it stands, the country’s financial watchdog, the CVM, prohibits regulated investment funds from trading in the virtual asset class.

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