Binance has inked a memorandum of understanding (MOU) to potentially acquire Brazilian securities brokerage Sim;paul Investimentos, the crypto exchange announced on Monday.
The firm said that it would “explore the acquisition” of Sim;Paul under the MOU, with the aim of further developing Brazil’s cryptocurrency and blockchain ecosystem.
In an announcement statement, Binance underscored that Sim;paul is authorized by Brazil’s central bank and its securities exchange commission (CVM). The transaction would require approval from Brazilian regulators, including the central bank. The companies did not disclose any timeframe for closing a possible deal.
Binance has faced regulatory scrutiny in Brazil in the past few years. The exchange suspended futures trading on its Brazilian website last year, as the website Portal do Bitcoin reported. That came after a July 2020 alert from the CVM, which named Binance Futures as one of three entities that were not registered to operate in the Brazilian securities market at the time.
“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,” Binance CEO Changpeng Zhao said in a press statement.
Sim;paul was born in 2019, according to a timeline on its website. The firm then received Central Bank approval on October 2020 and launched services in December 2020. The firm lists a location in Porto Alegre, Brazil.