Binance, a global cryptocurrency exchange, has launched two offices in Brazil in an effort to expand its presence in the South American nation, where a number of firms have introduced digital asset trading services in recent months.
Monday, Binance launched offices in So Paulo, Brazil’s financial capital, and Rio de Janeiro, the country’s second-largest metropolis. According to a Binance release, CEO Changpeng Zhao (CZ) revealed the intention to launch the headquarters in March. The exchange currently includes a Brazil-based staff of around 150 individuals.
Brazil’s currency, the real, and global markets surged on Monday after news of a presidential runoff election, after a tight contest between current president Jair Bolsonaro and left-leaning former president Luiz Inácio Lula da Silva on Sunday.
Binance, the world’s largest cryptocurrency exchange based on trade volume, has been eyeing Brazil strategically for months. The exchange allegedly met with government authorities and signed a memorandum of understanding (MOU) in March to purchase Sim;paul Investimentos, a locally-regulated securities brokerage. The Brazilian central bank is examining the transaction, according to Binance, but its status is uncertain.
Henrique Meirelles, a former Brazilian finance minister, recently joined to the company’s worldwide advisory board.
As a long-awaited measure waits in the lower house of Brazil’s legislature, the nation still lacks comprehensive cryptocurrency legislation. However, a number of prominent payment applications and digital banks, such as Nubank, Mercado Libre, and BTG Pactual, have launched digital asset trading capabilities in the last year. The nation scored sixth on the most recent Global Crypto Adoption Index by Chainalysis.
The acquisition of a locally-regulated firm such as Sim;paul would be a smart move for Binance to expand its presence in Brazil. In August 2021, the business was forced to cease futures trading on its Brazilian website after the country’s Securities and Exchange Commission (CVM) announced in July 2020 that it was not registered to operate in the Brazilian securities market.
Binance emphasised that it “operates in complete conformity with Brazil’s regulatory environment” and supports regulation.
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