On June 2, Brazilian cryptocurrency exchange Mercado Bitcoin received a payment provider license from Brazil’s central bank, allowing it to launch its fintech solution called MB Pay.
This license enables Mercado Bitcoin to offer digital banking services to Brazilian users using crypto assets held on the exchange, including digital fixed-income investments, staking, and other financial transactions. The company is also planning to introduce a debit card that will provide users with a crypto off-ramp.
Mercado Bitcoin’s fintech rollout was originally scheduled for 2021 but was delayed due to the regulatory approval process. The approval of the central bank is seen as a crucial step for the company to expand its business and improve its services to customers.
In addition to this development, Mercado Bitcoin faced a setback on the same day as it was ordered to return over 2,182 Bitcoin (worth $59.3 million at the time) to a group of investors. The investors alleged that a co-founder and former executive had withheld funds in a fabricated hack back in 2013.
Brazil has seen a growing demand for digital solutions, including cryptocurrencies, and its large population of almost 214 million has attracted crypto firms to the country. Binance, for example, considers Brazil as one of its top global markets and has a local partner, Latam Gateway, which also obtained a payment provider license in Brazil. Other crypto exchanges licensed as payment providers in the country include Crypto.com and Bitso.
Coinbase is also expanding its operations in Brazil by partnering with local payment providers to facilitate crypto purchases and enable deposits and withdrawals in the local currency since March.
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