Crypto exchange Mercado Bitcoin gets payment provider licence

The Brazilian crypto exchange getting the payment provider licence is a significant milestone for the country's crypto industry; it shows the growing adoption of digital currencies in Brazil

By Shashank Bhardwaj

2 min read

Published: Jun 5, 2023 04:28:50 PM IST

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Mercado Bitcoin, a cryptocurrency exchange in Brazil, has been granted a payment provider licence from the country’s central bank on June 2, 2023. This licence will allow the company to launch its 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, which is the parent company of Mercado Bitcoin.

MB Pay will offer Brazilian users specific digital banking solutions using crypto assets held on the exchange. It will enable them to invest in digital fixed-income investments, stake their crypto and access other financial transactions. Further it is anticipated that a debit card which will offer users to convert their crypto currency to fiat currency will go live soon.

One of the leading crypto exchanges in Brazil, Mercado Bitcoin has more than 3 million customers and over $5 billion in trading volume.

Traditional local broker Guide Investimentos had also previously announced a partnership with Mercado Bitcoin for entering into the digital asset market.

Its fintech rollout had actually been planned for 2021 but was delayed because of the regulator’s approval process. The development came on the day on which Mercado Bitcoin had been ordered to return over 2,182 bitcoins.

Brazil has a vibrant crypto market with huge demand for digital solutions. There are several other exchanges and platforms operating in the country, some of which have also obtained payment provider licences from the central bank. These crypto exchanges include Crypto.com and Bitso.

Coinbase, the largest crypto exchange of the US, is also expanding operations in the country by partnering with local payment providers to allow crypto purchases and withdrawals in Brazil’s local currency.

Recently Brazil has witnessed several other crypto-related moves, such as Latam Gateway, Binance’s payment provider, receiving a similar licence. The company is a facilitator for foreign firms which seek to operate in Brazil.

Overall, South American countries have been an attractive region for crypto. With many parts of the world struggling financially because of being underbanked or unbanked, nations like Brazil have attracted the attention of the crypto sector. This could make a huge change and include its citizens in the global financial market.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash