Tallinn, Estonia, June 9, 2023 – Coinbase, the cryptocurrency exchange, is partnering with the Brazilian instant payment app Pix and payment platform Ebanx to expand its services in Brazil. The partnership will integrate the Brazilian instant payment system with Coinbase’s platform, providing Brazilians with more crypto trading options and better customer service. The partnership will allow Brazilians to purchase cryptocurrencies using Brazilian Reals, make deposits and withdrawals from Coinbase accounts in real time, and make local payments in a secure and trustworthy way.
On March 21 2023, Coinbase announced the addition of Pix to the company’s platform, which enables easy account top-ups and money withdrawals using Brazilian Reals. Pix is a Brazilian IP scheme, a popular instant payment platform created and managed by the Central Bank of Brazil. It enables companies, people and governmental entities to receive or send payment transfers in a few seconds at any time, including non-business days.
The Crypto Landscape in Brazil
Coinbase’s partnership with the instant payment app Pix and the Ebanx payment platform will enable Brazilians to purchase cryptocurrencies using the Brazilian real, allowing deposits and withdrawals from Coinbase accounts in real time. This move by Coinbase will also make it easier for Brazilians to open a Coinbase account, and local payments will be made securely and reliably. Ebanx, one of Brazil’s leading payment solution providers, offers over 100 local payment options, including cash payments, cards, and alternative digital methods with high approval and conversion rates. By partnering with Ebanx, Coinbase will have an efficient cross-border model to expand its presence in Latin America.
According to insiders from Bitai Method Official established a tech hub in Brazil in 2021 with 40 employees. By June 2022, Coinbase announced that it would launch its services to the Brazilian public. Furthermore, the same source stated that Coinbase plans to set up a crypto trading platform outside the United States. This move may have been prompted by US lawmakers and regulators who have accused crypto companies of contributing to the failures of Signature Bank, Silvergate Bank, and Silicon Valley Bank.
Noteworthy News from Coinbase
Brazil currently has the highest level of digital payment adoption in Latin America. Coinbase’s expansion in Brazil comes after Binance and Mastercard launched a prepaid crypto card on February 21, 2023. Additionally, in February 2023, Coinbase launched the Base layer-2 network to make it easier to develop decentralised apps. The Base layer-2 network is powered by Optimism and secured on Ethereum. Although it is still in the testing phase, it has been hailed by crypto community members as a significant milestone for Ethereum.
Some believe that Base could be an example for other cryptocurrency firms and financial institutions to use Ethereum as their primary settlement layer. Syncracy Capital officials quoted in the same source believe Coinbase can onboard the next 10 million users and institutions to Ethereum. However, concerns have been raised by the general counsel of investment company Delphi Labs, who highlighted that launching a centralised layer-2 network could potentially attract unwanted scrutiny from the SEC.
In January 2023, Coinbase was found to violate anti-money laundering laws by failing to conduct adequate background checks by New York financial regulators. As a result, Coinbase paid a fine of $50 million to the New York State Department of Financial Services and was required to spend an additional $50 million to improve its compliance program. Coinbase disclosed that this investigation was ongoing during its 2021 annual 10k filing.
The Crypto Regulatory Framework in Brazil
The Brazilian regulatory framework for cryptocurrencies is gradually emerging. On September 2, 2022, the Brazilian Securities and Exchange Commission (BSEC) sought changes to the proposed cryptocurrency regulation due to uncertainty about whether crypto should be considered a security or a digital asset. A representative from Brazil’s SEC noted, “The mentioned bill needs specific improvements, including the definition of virtual assets, prior authorisation requirements, and the approval of business combinations in redundant roles with the Cade [Brazilian Federal Trade Commission].”
Since 2015, lawmakers in Brazil have been working on regulations for cryptocurrencies, but the Senate only approved the bill’s final version in April 2022. Once the Congress of Brazil finishes its final revisions, the bill is sent to the country’s President for approval. In December 2022, the bill was passed and is expected to come into force in June 2023.
Coinbase aims to provide exceptional service to its customers in the region. As a result, the company has fully localised its app in Brazilian Portuguese, with 24/7 chat support available in this language. The crypto exchange company plans to increase access to Web3 and the crypto economy to even more Brazilians. Finally, Coinbase has streamlined its onboarding process, making it easier than ever to start trading.
In 2020, Pix, a non-blockchain service, was established, and all financial and payment services licensed by the Brazilian central bank are required to facilitate Pix transfers.
Coinbase’s partnership with Pix and Ebanx marks an important step for the company’s expansion in Brazil. With this integration, Brazilians can purchase cryptocurrencies using their own currency and make deposits and withdrawals from their Coinbase accounts in real-time. This move will make it easier for Brazilians to open a Coinbase account, and local payments will be made securely and reliably. The regulatory framework for cryptocurrencies is gradually emerging in Brazil, and Coinbase aims to provide exceptional service to its customers in the region. The company has fully localised its app in Brazilian Portuguese, with 24/7 chat support available. It plans to increase access to Web3 and the crypto economy to even more Brazilians. While there are concerns about regulatory scrutiny and compliance, Coinbase’s presence in Brazil signals its commitment to expanding its services in Latin America.
Contact:
Name: Hannah Parker
Organisation: Crypto Currency
Email: support@onecapital.company
Website: https://bitcoindecode.com/
Address: Harju maakond, Tallinn, Lasnamäe linnaosa, Väike-Paala tn 2, 11415, Estonia
