Today in FinTech: Changes Coming to WeChat Pay; Binance Seeks Brazilian Bank; Monite Automates SME AP

In today’s FinTech news, Tencent could be faced with spinning WeChat Pay into its payments subsidiary, while crypto exchange Binance looks to acquire a bank in Brazil in order to enter the market in the country. Plus, German FinTech Monite offers a one-stop-shop for automating administration and accounting tasks.

China Could Require Tencent’s WeChat to Secure New Payment License

Chinese officials could mandate that WeChat Pay be spun-off into Tencent’s newly-created payments subsidiary, which could necessitate that the mobile payments app secures a new license.

The move is part of China’s ongoing crackdown on tech companies that started last year. Companies offering financial services are being required to separate those units from their main businesses. Once separated, the subsidiaries would be regulated like a traditional bank.

​​Seeking Regulatory Foothold, Binance Crypto Exchange on Hunt for Brazilian Bank

Cryptocurrency exchange Binance is reportedly working on entering the Brazilian marketplace by acquiring banks and payment processors in the country, although any acquisitions would have to be approved by regulators.

Since August 2021, Binance officials have been working closely with regulatory authorities to comply with rules in Brazil. Binance also recently received a crypto-asset service provider license from the Central Bank of Bahrain and a virtual asset license from the Virtual Asset Regulatory Authority in Dubai.

Embedded Finance Streamlines Expense Management for EU SMEs

Small- to medium-sized enterprises (SMEs) are often underserved when it comes to finance automation, which is something that Berlin-based FinTech Monite is tackling.

Co-founder and CEO Ivan Maryasin told PYMNTS that Monite is a one-stop-shop for automating administration and accounting tasks. Using a single application programming interface (API), any neobank or vertical Software-as-a-Service platform can offer invoicing and accounts payable (AP) automation.

Bank of Canada Exploring CBDC Design with MIT

As part of the Bank of Canada’s exploration into a central bank digital currency (CBDC), it is partnering with the Massachusetts Institute of Technology (MIT) on the design. The year-long research project with MIT’s Media Labs Digital Currency Initiative is part of the bank’s wider development plan for digital currencies and CBDCs.

21 Crypto Firms Still Awaiting FCA Approval

Cryptocurrency firms that want to continue operations in the U.K. need approval from the country’s Financial Conduct Authority by April 1. However, while there are more than 100 companies looking for the green light from the regulator, just 27 have been approved.

The FCA has a strict position on cryptocurrency firms, having already banned the sale of crypto derivatives to small retail investors in October and having launched a crackdown on crypto ATMs earlier in early March.