Central Bank of Brazil Approves Binance Broker-Dealer Acquisition, Bolstering Compliance Efforts

The Central Bank of Brazil has officially approved Binance‘s proposed acquisition of Sim;paul, a locally licenced broker-dealer institution. 

Global cryptocurrency exchange Binance can now comply with ongoing regulatory advancements in Brazil more efficiently as it completes the acquisition of the broker-dealer which is authorised to distribute securities and issue electronic money (EMI).

Guilherme Nazar, head of Latin America for Binance, also commented: “This approval marks a significant milestone in our ongoing commitment to expanding our products and services in Brazil. It highlights our dedication to compliance and regulatory excellence while enhancing our ability to provide secure and innovative financial solutions to our growing user base in the country. We look forward to taking this opportunity to further drive the adoption of digital assets and deliver unparalleled value to our clients in Brazil.”

The Central Bank of Brazil and the Brazilian IRS have published proposals for a dedicated regulatory framework, putting it up for public consultations for market participants and experts to make suggestions, while in Congress legislators discuss federal bills on asset segregation and stablecoins, which are also relevant for the sector.

“A market with burgeoning crypto adoption, Brazil is home to a vibrant and dynamic community that is readily embracing the future of finance,” added Richard Teng, CEO of Binance. “We thank local regulators for their commitment to defining clear rules for this important, growing industry. This approval underscores our commitment to compliance and security, and we look forward to continuing to provide our local users with a secure, reliable, and innovative platform for their digital asset needs.”

Binance’s registration in Brazil follows other recent regulatory advancements across the globe, including in Argentina, India, Kazakhstan, and Indonesia.

Binance invests in compliance

In line with its global standards, Binance’s compliance programme includes robust anti-money laundering (AML) policies and controls and a comprehensive framework for combating the financing of terrorism (CFT).

Binance’s compliance program includes robust identity verification processes (Know Your Customer and Know Your Business) and the Financial Crime Compliance unit, designed to assist law enforcement in investigating crypto asset-related crimes and capacity building, thereby strengthening the collaborative security of the ecosystem.

Binance recently announced it plans to expand its global compliance team by 34 per cent to 645 full-time employees, including strategic senior hires. As of now, Binance employs over 1,000 compliance staff and contractors.