The Brazilian Central Bank has granted a payment institution license to Singapore-based crypto exchange Crypto.com.
The license will allow it to continue providing regulated fiat wallet services to Brazilian users.
Recently, the Brazilian Central Bank announced the launch of a CBDC by 2024.
Obtained a payment institution licence in Brazil. This is the platform's second crypto licence in a country, which will be granted in the second half of 2022 after receiving the first approval from the UK FCA.
The licence was authorized by the Central Bank of Brazil, allowing it to continue providing regulated fiat wallet services to Brazilian users. Meanwhile, Crypto.com has been offering Visa Card services in Brazil since November 2021.
Kris Marszalek, CEO of Crypto.com, commented on the matter,
“Brazil, along with the rest of the LATAM market, is a crucial location in the pursuit of our goal of cryptocurrency in every wallet. We are delighted to have obtained the licence in Brazil.”
Crypto.com is a decentralized cryptocurrency exchange with over 70 million users. This year, the exchange received licenses for various services from authorities in Singapore, France, the United Kingdom, Dubai, South Korea, and Canada.
During the FTX collapse, which caused fear in the crypto market, the exchange also maintained its users' trust. At that time, Crypto.com published their Proof of Reserves, assuring customers that their funds for multiple assets are reserved 1:1, with USDT holding the highest reserve ratio of 106%.
Brazil is the largest South American country both in terms of land and population. Reports estimated that 16 million Brazilians, or 7.8% of the entire population, own cryptocurrency. In addition, Roberto Campos Neto, president of the Brazilian Central Bank, has announced the launch of a CBDC by 2024.
Moreover, the Central Bank of Brazil in November authorised Brazilian payments company CloudWalk a payments institution licence. This makes Cloudwalk the first cryptocurrency firm in Brazil to be granted a payment institution licence.
This indicates that Brazil is willing to boost the utilization of digital currencies in the country, which will benefit the future economic growth of the country.
Meanwhile, the Brazilian Securities and Exchange Commission is pushing for legislative reforms to expand its regulatory authority. The country enacted cryptocurrency legislation for the first time in April, after several years of deliberation.
What do you think, will this move restore Brazilian crypto users' trust in digital currencies? Which exchanges do you believe will be the next to acquire a payment institution licence in Brazil? Share your thoughts in the comment section below.
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