Leading cryptocurrency exchange Binance has announced plans to buy Brazilian securities brokerage firm Sim;paul Investimentos and has reportedly signed a memorandum of understanding (MoU) to move forward with the deal.
According to local news outlets, the brokerage firm is authorized by the Central Bank of Brazil and the country’s Securities and Exchange Commission. While any deal will require the approval of local regulatory authorities, it could allow Binance to offer crypto derivatives in Brazil.
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In August 2021, Binance was barred from offering Brazilian clients access to these financial instruments, as it did not have a license to do so. By acquiring Sim;paul Investimentos, a firm launched in 2019 to compete with other local brokerage firms, it could move to resume the offering.
Binance is reportedly investing in the Brazilian market and growing its local marketing team in a bid to compete with Mercado Bitcoin, a prominent cryptocurrency exchange in Brazil. Binance’s founder and CEO Changpeng Zhao was quoted saying:
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.
Last month, Binance announced it was investing $200 million in Forbes. The deal saw Binance chief communications officer Patrick Hillmann and head of Binance labs Bill Chin join Forbes’ nine-person Board of Directors and is part of the publisher’s plans to go public.
The exchange has reportedly been eyeing investments outside of the cryptocurrency space. Last year, Binance moved to improve its relationship with regulators through a series of hires that included crisis and risk expert Patrick Hillman, who is now joining Forbes’ Board, and former UN advisor Martin Bruncko.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Unsplash
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