Binance, a global cryptocurrency exchange, has signed a Memorandum of Understanding (MoU) to acquire the Brazilian securities brokerage Sim;paul Investimentos.
Sim;paul is a traditional brokerage house that is licensed by both the Brazilian Central Bank and the Securities and Exchange Commission (CVM). While Binance has done business in Brazil for some time, pending legislation in that country would require crypto exchanges to be properly licensed, necessitating the establishment of a local office or the acquisition of an existing operator.
Binance founder and CEO Changpeng Zhao said, “Crypto can transform and facilitate people’s lives in a rapidly developing market like Brazil, 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.”
According to the company’s website, Sim;paul was created in 2019 by Joo Silveira and acquired authorization to operate from the Central Bank of Brazil in October 2020. Binance previously informed that Brazil is a major strategic market, saying that active transacting users in 2021 were up 125 percent from the previous year.
What is a Memorandum of Understanding (MoU)?
A memorandum of understanding(MoU) is a formal document that shows an agreement between two or more parties. It is not legally binding, but it indicates the parties’ intent to proceed with a contract.