Cryptocurrency Exchange Mercado Bitcoin Obtains Payment Provider License
Cryptocurrency exchange Mercado Bitcoin was granted a payment provider license from Brazil’s central bank on June 2, as reported by local media. This license will pave the way for the launch of the company’s fintech solution, MB Pay.
“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,” said Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin.
MB Pay: Enhancing Financial Services with Crypto Assets
As a payment institution, MB Pay will offer Brazilian users a range of digital banking services utilizing the crypto assets held on the exchange. These services include digital fixed-income investments, staking, and various financial transactions. Moreover, the company plans to introduce a debit card that will provide users with a convenient crypto off-ramp.
Partnership with Guide Investimentos
Prior to this development, traditional local broker Guide Investimentos had announced its partnership with Mercado Bitcoin to enter the digital asset market, further demonstrating the growing interest in cryptocurrencies.
Delayed Fintech Rollout and Investor Dispute
Mercado Bitcoin’s fintech rollout had initially been planned for 2021 but faced delays due to the regulator’s approval process. On the same day as the payment provider license announcement, Mercado Bitcoin was ordered to return over 2,182 Bitcoins, equivalent to $59.3 million at the time of writing, to a group of investors. The investors alleged that a co-founder and former executive had withheld funds in a fabricated hack in 2013.
Booming Crypto Market in Brazil
The increasing demand for digital solutions and Brazil’s population of nearly 214 million have attracted numerous cryptocurrency firms to the country. Binance, one of the world’s leading exchanges, has ranked Brazil among its top global markets. Its local partner, Latam Gateway, also received a payment provider license in Brazil on May 19.
Other cryptocurrency exchanges licensed as payment providers in Brazil include Crypto.com and Bitso. Additionally, Coinbase, a prominent American exchange, has been expanding its operations in the country by partnering with local payment providers since March. This allows Brazilian users to purchase cryptocurrencies and conduct deposits and withdrawals in the local currency.