Mercado Bitcoin Earns Payment Provider License
Cryptocurrency exchange Mercado Bitcoin has recently acquired a payment provider license from the Central Bank of Brazil, as reported by local news sources on June 2nd. This will enable the company to introduce its fintech solution, MB Pay.
Roberto Dagnoni, CEO of 2TM—the parent company of Mercado Bitcoin—expressed his delight at the development, citing, “This approval from the Central Bank is a pivotal step forward, paving the way for us to expand our operations and improve customer service.”
MB Pay to Offer Digital Banking Services
MB Pay, as a payment institution, will offer certain digital banking services to its Brazilian users. These services will be rendered using the crypto assets maintained on the exchange. These include digital fixed income investments, staking, and other financial transactions. Plans to introduce a debit card that provides a crypto off-ramp for users are underway.
In the same week, Guide Investimentos, a traditional local broker, announced its collaboration with Mercado Bitcoin to foray into the digital asset market.
Delays in Fintech Rollout and Legal Complications
Although Mercado Bitcoin had initially planned for its fintech rollout in 2021, it was postponed due to the regulatory approval process. On the day of the development, Mercado Bitcoin was also directed to return approximately 2,182 BTC (valued around $59.3 million at the time of writing) to a group of investors. The investors had accused a co-founder and former executive of withholding funds under the pretense of a fabricated hack back in 2013.
Brazil: A Hotspot for Crypto Companies
Brazil, with its growing demand for digital solutions and a population of nearly 214 million, is a significant attraction for crypto firms. Binance previously listed Brazil among its top international markets. Latam Gateway, Binance’s local partner, also secured a payment provider license in the country on May 19.
Crypto.com and Bitso are among the other crypto exchanges that have been licensed as payment providers in Brazil.
Expansion of Other Crypto Exchanges
In addition to these developments, Coinbase is further expanding its operations in the country. Since March, the American exchange has partnered with local payment providers to facilitate crypto purchases and allow deposits and withdrawals in the local currency.
