Binance eyes Brazil

Binance CEO Changpeng Zhao told the firm’s recent conference that the exchange is looking to expand into Brazil by purchasing banks and payment processors in the country.

In the last few years Binance, which is the world’s largest centralized cryptocurrency exchange, has looked to increase its global reach but has been hindered by regulations. The business has been pushing back and looking for ways to continue to expand while also remaining compliant.

Binance is looking to increase its Brazilian presence in a regulated and compliant way. Zhao said his team is constantly working with government and regulatory boards to ensure their expansion is facilitated correctly.

Zhao recently visited Brazil where he met with regulators and politicians including the governor of the Brazilian state of São Paulo, João Dória.

Binance currently has a team of about 100 employees in Brazil. After signing a memorandum of understanding with Brazilian securities brokerage Sim;paul Investimentos, Zhao announced he will be looking to grow his team in the region

Despite already operating in Brazil, the Binance team is making this large push due to the changing regulatory landscape in the country. Brazil currently has pending legislation which would require all cryptocurrency exchanges in the country to be registered. This can be a tricky process for overseas companies.

Binance has struggled with regulations in a few key countries. The US was the first country to ban Binance from operating due to being unregistered. China, Binance’s largest market at the time, banned all use and trading of cryptocurrencies which forced Binance to close down.

Most recently the UK also banned Binance from operations due to unregulated securities trading.

South America is a prime target for many cryptocurrency companies. Large populations and struggling fiat currencies have had many looking into digital assets. The lack of financial institutions is also a large problem in some South American countries.

Brazil is one of the few countries which is taking a serious look at making BTC a legal tender. Many articles of legislation are still pending votes which could make this a reality. Should this legislation pass, they would become the second country to make BTC a legal tender, behind El Salvador.

Source

Updated: 03/18/2022 — 19:00