In a historic move, crypto exchange Binance has announced that it will officially open two new offices in Brazil.
According to local media, Binance’s core team will consist of 150 employees, who can report to the office or work remotely. The new offices are located in Rio de Janeiro and Sao Paolo, which are considered the main business centers of the country.
Binance also plans to launch its crypto debit card in Brazil, the second Latin American country to have the product. The Binance Debit Card works the same as any other bank card, except it’s not linked to a mobile banking app, but to a crypto wallet.
Binance allows customers to top up their card with funds through the Binance Card app and then convert their crypto holdings to fiat in seconds, which can be spent at over 90 million Mastercard merchants globally. Thus, the card does not connect directly to the platform’s customer account.
Having entered the local market in 2019, Brazil is one of the few countries where Binance has set up a physical office. However, a group of local brokerage firms filed a lawsuit against the exchange in March, accusing it of operating illegally in the country.
The move comes nearly three months after Binance severed ties with its existing payment partner in Brazil over a conflict with “its values”.
Citing new requirements imposed by the Central Bank of Brazil, Capital said it had to sever ties with Binance as the exchange did not comply with the new rules. The Brazilian bank, which also provides payment services for other exchanges, said Kucoin and Huobi have adapted their systems to the changes. As such, they remain operational on the Capital platform, and their customers can continue their transactions in reais regularly.
Binance suspended Brazilian real deposits and withdrawals through the Pix government payment system in June. It should be noted that the blocking of payments coincided with the end of a deadline imposed by the Brazilian central bank on Pix suppliers to implement new “know your customer” requirements.
Binance also planned to buy banks and payment processors in Brazil to gain market access. It has already signed a memorandum of understanding to eventually acquire Brazilian securities brokerage firm, Sim;paul Investimentos. However, the takeover requires Binance to obtain approval from the Securities and Exchange Commission of Brazil (CVM) and the Central Bank of Brazil.