Binance Signs MoU to Secure Brazilian Securities Brokerage Sim;Paul Investimentos
A Memorandum of Understanding (MoU) was inked by global crypto exchange Binance to attain Brazilian securities firm Sim;paul Investimentos. The move will brace Brasilia’s cryptocurrency and blockchain ecosystem.
Brazil’s Crypto Industry to Gain a Boost
It was announced on Monday that Binance, the world’s leading cryptocurrency and blockchain infrastructure provider, has signed an agreement to explore the acquisition of Sim;paul Investimentos, a Brazilian securities brokerage firm that is authorized by the Central Bank of Brazil and the Securities and Exchange Commission (CVM). In order to further the development of the cryptocurrency and blockchain ecosystem in Brazil, this decision was made.
Sim;paul is a typical broker-dealer licensed by the Brazilian Central Bank and the Securities and Exchange Commission (CVM). It is possible that pending Brazilian law will require crypto exchanges to have valid licenses, which means either creating a local office or acquiring a current operator will be necessary for Binance to continue operating in that nation.
Changpeng Zhao, founder and CEO of Binance said: “At Binance, our goal is to grow adoption of crypto around the world to generate a positive impact for our users, the crypto and blockchain community, and society in general. 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.”
According to Binance’s announcement, any transaction would be subject to approval by regulatory authorities, including the Central Bank of Brazil.
Binance Continues to Grow
In recent years, Binance has made a concerted effort to develop its fiat-to-crypto gateways as well as its payment options.
On March 7, Binance announced the creation of Bifinity, the crypto exchange’s official fiat-to-crypto payment firm, which will serve to integrate cryptocurrency service providers with the traditional financial system.
This move by Binance, the world’s largest cryptocurrency exchange by trading volume, will help the company to improve its fiat-to-crypto payments technology.
By providing buy-and-sell crypto services and API crypto payments integrations, the new crypto payment platform enables merchants and businesses to take advantage of crypto and give cryptocurrency services to their clients.
Binance CEO Changpeng “CZ” Zhao indicated in an interview with the Financial Times on March 9, 2022, that the company is aiming to invest in traditional industries. The announcement follows the purchase of a $200 million stake in Forbes, a global media organization.
When asked about future investments, CZ noted that Binance is eyeing a variety of sectors, including media and e-commerce, retail, and gaming, among many others. It is possible that Binance might become a “conglomerate,” but CEO Binance stated that the company’s focus is on “creating the infrastructure to integrate digital assets into existing industries.”
According to Zhao:
“We want to identify and invest in one or two targets in every economic sector and try to bring them into crypto. The strategy is about making the crypto industry bigger.”
