Mercado Bitcoin: Brazil’s Leading Crypto Exchange Scores Major Payment Provider License!

Mercado Bitcoin Acquires Payment Provider License from Brazil's Central Bank, Allowing for Digital Banking Services to Crypto Exchange Users

Mercado Bitcoin, a cryptocurrency exchange based in Brazil, has been granted a payment provider license from the country’s central bank. The move will allow the company to launch its fintech solution, MB Pay, which will enable certain digital banking services for the exchange’s users in Brazil. As a payment institution, MB Pay can provide Brazilian users with financial transactions using crypto assets held on the exchange, such as investing in digital fixed income, staking, and other financial transactions. A debit card offering a crypto off-ramp for users is expected to go live soon.

Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin, said, “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.” Mercado Bitcoin’s fintech rollout had been planned for 2021, but was delayed due to the regulator’s approval process.

Earlier this week, traditional local broker Guide Investimentos announced a partnership with Mercado Bitcoin to enter the digital asset market. The demand for digital solutions and a population of nearly 214 million have drawn crypto firms to Brazil. 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. Coinbase 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.

It is worth noting that on the same day as Mercado Bitcoin was granted its payment provider license, the exchange 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. The case highlights the importance of trust and transparency in the cryptocurrency industry, and the need for regulatory oversight to protect investors.

Despite this setback, the growth of the cryptocurrency industry in Brazil and Latin America as a whole is undeniable. With a young and tech-savvy population, as well as a growing interest in alternative investments, the region is poised to become a major player in the global crypto market. As more companies like Mercado Bitcoin and Binance enter the market, it is likely that we will see increased innovation and competition, which will ultimately benefit consumers.

Martin Reid

Martin Reid

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