Global crypto exchange Binance has signed a Memorandum of Understanding (MoU) to acquire Brazilian securities brokerage Sim;paul Investimentos, the company announced Monday.
- Sim;paul is a traditional brokerage operator authorized by both the Central Bank of Brazil and the Securities and Exchange Commission (CVM). While Binance has done business in Brazil for some time, pending legislation in that country would require crypto exchanges to have proper licensing, making either opening of a local office or acquiring an existing operator a probable necessity.
- Any deal would naturally require the approval of regulatory authorities, Binance added.
- In August 2021, Binance suspended the trading of futures contracts on its Brazilian platform to comply with local regulations.
- “In a fast-developing market like Brazil, crypto can transform and facilitate people’s lives and as such we believe — in full collaboration with local authorities — that Binance has a lot to contribute in developing the community and ecosystem in Brazil,” said Binance founder and CEO Changpeng Zhao.
- Sim;paul was founded by João Silveira in 2019, and in October 2020 received authorization from the Central Bank of Brazil to start operating, according to the company’s website.
- Brazil is a key strategic market, Binance told CoinDesk recently, noting that in 2021 active transacting users were up 125% versus the previous year.