Brazilian crypto exchange Mercado Bitcoin is licensed as a payment provider: Report

Brazilian crypto exchange Mercado Bitcoin is licensed as a payment provider: Report

MB Pay, as a payment institution in the country, will provide certain digital banking services for the users of the crypto exchange.

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Local media reported that the Brazilian central bank granted Mercado Bitcoin a license as a payment provider on June 2, . The company will launch MB Pay with the license.

The approval by the Central Bank allows us to expand our business, and provide a better service for our customers,” Roberto Dagnoni said, CEO of 2TM.

As a payment institution MB Pay is able to offer Brazilian users specific digital banking services based on crypto assets that are held at the exchange. These include digital fixed-income investment, staking, and other financial transactions. Soon, a debit card with a crypto-off-ramp will be available to users.

Mercado Bitcoin, a local traditional broker, announced a similar partnership with Guide Investimentos to enter the market for digital assets.

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The fintech rollout was originally planned for 2021, but the approval process by the regulator delayed it. This development occurred on the same day that Mercado Bitcoin was ordered by the regulator to return 2,182 Bitcoins ( BTC), worth $59.3 millions at the time of this writing, to a group investors. Alleging that a former executive and co-founder had withheld funds during a fabricated 2013 hack.

Crypto firms have been attracted to Latin America by a vibrant demand for digital products and a population that is close to 214,000,000. Binance previously ranked Brazil as one of its top global markets. On May 19, its local partner Latam Gateway was awarded a payment providers license for the country.

Crypto.com, Bitso and other crypto exchanges are also licensed payment providers in Brazil.

Coinbase has also expanded its operations in Brazil. Since March, American exchange partnered with local payment service providers in order to enable crypto purchases and deposits and withdrawals using local currency.

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