Mercado Bitcoin licensed as payment provider in Brazil.
The Brazilian central bank granted payment provider license to Mercado Bitcoin, a cryptocurrency exchange, on June 2. As a result, the company will launch its fintech solution MB Pay. According to Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin, “The approval of the Central Bank is a crucial step, as it allows us to continue expanding our business and providing a better service to our customers.” MB Pay will offer Brazilian users certain digital banking services using crypto assets held on the exchange, such as investing in digital fixed income, staking, and other financial transactions. The company plans to soon launch a debit card offering a crypto off-ramp for users.
Guide Investimentos, a traditional local broker, also announced a partnership with Mercado Bitcoin to enter the digital asset market earlier this week. However, Mercado Bitcoin’s fintech rollout, which was planned for 2021, was delayed due to the regulator’s approval process. This development came on the same day as Mercado Bitcoin was ordered to return over 2,182 BTC (~$59.3 million as of writing) back to a group of investors alleging that a co-founder and former executive had withheld funds in a fabricated hack in 2013.
Brazil’s vibrant demand for digital solutions and a population of nearly 214 million have drawn crypto firms to the Latin America country. Binance has previously ranked Brazil among its top global markets. Its local partner, Latam Gateway, was also granted a payment provider license in the country on May 19. Other crypto exchanges licensed as payment providers in Brazil include Crypto.com and Bitso. Blockchain is also expanding operations in the country. Since March, the American exchange has partnered with local payment providers to offer crypto purchases, as well as enable deposits and withdrawals in the local currency.
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