Mercado Bitcoin Secures Key Regulatory Approval
Mercado Bitcoin, a leading cryptocurrency exchange in Brazil, has been granted a payment provider license from the country's central bank, according to local media reports on June 2. This regulatory approval paves the way for the launch of the company's fintech solution, MB Pay. Roberto Dagnoni, CEO of 2TM, Mercado Bitcoin's parent company, welcomed the decision, acknowledging its importance in expanding its business and improving customer service.
MB Pay: Enabling Crypto-Driven Digital Banking Services
With the status of a payment institution, MB Pay is set to offer specific digital banking services to Brazilian users. These services will be facilitated using crypto assets held on the exchange. The planned offerings include digital fixed-income investments, staking, and other financial transactions. The company also anticipates rolling out a debit card to provide users with a convenient crypto off-ramp.
Strategic Partnership and Delayed Fintech Rollout
Earlier in the week, traditional local broker Guide Investimentos announced a partnership with Mercado Bitcoin to penetrate the digital asset market. Although Mercado Bitcoin had initially scheduled the rollout of its fintech solution for 2021, delays in securing regulatory approval pushed the launch date back. This milestone coincided with an order for Mercado Bitcoin to return around 2,182 BTC (valued at approximately $59.3 million) to investors claiming a co-founder and former executive withheld funds during an alleged 2013 hack.
Brazil: A Magnet for Crypto Firms
The increasing demand for digital solutions and Brazil's large population has made it a prime location for cryptocurrency firms. Binance, for example, has previously listed Brazil among its top global markets. Its local partner, Latam Gateway, received a payment provider license in the country on May 19. Other crypto exchanges, such as Crypto.com and Bitso, have also been licensed as payment providers in Brazil.
Coinbase Bolsters Presence in Brazil
Coinbase, the American cryptocurrency exchange, is expanding its operations in Brazil. Since March, it has partnered with local payment providers to facilitate crypto purchases and enable deposits and withdrawals in the local currency.