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Mercado Bitcoin Earns Payment Provider License
In a significant milestone for the crypto industry, Brazilian cryptocurrency exchange Mercado Bitcoin has earned a payment provider license from Brazil’s central bank, as reported by local news outlets on June 2. The newly obtained license paves the way for the company to launch its fintech offering, MB Pay.
Roberto Dagnoni, the CEO of 2TM, Mercado Bitcoin's parent company, expressed his enthusiasm about the central bank's approval. He acknowledged it as a vital step forward, allowing the company to broaden its business reach and improve its services for clients.
Enriching Digital Banking Services with Crypto
With MB Pay serving as a licensed payment institution, it's poised to provide a variety of digital banking services to Brazilian customers. These services will revolve around crypto assets held on the exchange and will include digital fixed-income investments, staking, and other financial transactions. The company also anticipates launching a debit card soon that will offer users an accessible off-ramp for their crypto holdings.
Earlier, Guide Investimentos, a traditional local broker, announced its intention to collaborate with Mercado Bitcoin to make its entrance into the digital asset market.
Delayed Fintech Rollout and Legal Developments
While the launch of Mercado Bitcoin's fintech arm had been scheduled for 2021, regulatory approval processes pushed back its rollout. The license approval coincided with a court order instructing Mercado Bitcoin to return over 2,182 Bitcoin, currently valued at approximately $59.3 million, to a group of investors. This followed allegations that a co-founder and former executive retained funds following a contrived hack in 2013.
A Magnet for Crypto Businesses in Latin America
With a strong appetite for digital solutions and a population nearing 214 million, Brazil has become an attractive destination for crypto enterprises. Previously, Binance listed Brazil among its top international markets, while its local associate, Latam Gateway, received a payment provider license on May 19.
In Brazil's growing digital banking landscape, other crypto exchanges with payment provider licenses include Crypto.com and Bitso.
Leading American exchange Coinbase is also extending its presence in the country. Since March, it has collaborated with local payment providers to allow crypto purchases and facilitate deposits and withdrawals in the local currency.
