Binance, a leading cryptocurrency exchange, has stated its intention to expand its operations to Brazil. The firm announced that it has signed a memorandum of understanding to acquire a regulated securities brokerage firm in Brazil. The company, Sim;paul Investimentos, is said to be fully compliant with Brazilian laws and offers a variety of investment options to its customers, including various funds and stocks.
Binance is setting its sights on Latam, specifically Brazil, as the company is making moves to establish a more significant foothold in the country. The exchange announced it has inked a memorandum of understanding with a Brazilian brokerage firm called Sim;paul Investimentos, with the intention of acquiring the company after having cleared the requirements and receiving approval from regulators, including the Bank of Brazil.
Binance’s move, according to the press release issued, has the goal of developing the cryptocurrency and the blockchain ecosystem in Brazil. On this future purchase, Changpeng Zhao, CEO of Binance, stated:
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.
Sim;paul Investimentos aimed to increase the value of its investments last year, backed by the support of wealth managers and partnerships. However, the company sold its customer portfolio to Guide Investimentos in January. In the same month, Sim;paul Investimentos also got rid of its technology team, selling it to Warren, another brokerage firm in the country.
This latest move echoes the expansion policy Binance announced earlier this month. In an interview with Financial Times, Zhao explained that the strategy the company will follow to keep growing its business in the future includes investments in traditional markets and sectors. Zhao declared:
We want to identify and invest in one or two targets in every economic sector and try to bring them into crypto.
Binance’s investments also include sectors such as publishing and media. On February 10, the exchange revealed an investment of $200 million in Forbes, the global media company, with the intention of bolstering the digital offers of the company, as part of its Web3 strategy.