(Sponsored) The central bank of Brazil has made an unprecedented move by approving Binance’s proposed purchase of Sim;paul, a local licensed financial institution. As Binance is a global cryptocurrency exchange, this decision represents Brazil’s desire to integrate crypto as a regular form of legal tender in the country.
What This Means for Binance
This acquisition means that Binance can now more easily comply with Brazil’s regulatory and financial rules. This is especially important to the company due to its global reputation as the world’s largest cryptocurrency exchange and its desire to abide by all regulations and remain fully above board in all of its services.
Using Binance is one of the many ways potential investors can find and purchase various cryptocurrencies, including the top crypto presales now available for purchase. With this in mind, it is paramount that they remain fully legal. As such, the company is often looking for new ways to improve its security and overall innovation, and this move will greatly aid this goal.
What this means for the People of Brazil
The head of the Latin American Binace, Guilherme Nazar, spoke enthusiastically on the approval, highlighting how it will allow the company to expand its products and services to the people of Brazil.
This has benefits both on the small and large scale as not only will the individual crypto investor benefit from the approval, but it also represents Brazil’s open-mindedness for cryptocurrency and the country’s overall support of digital assets.
Brazil’s Stance on Cryptocurrency
Brazil is one of the leading countries when it comes to crypto acceptance and integration, and this move further reflects that. Recently, the Central Bank of Brazil and the Brazilian Internal Revenue Service (IRS) have been working on publishing various proposals for a regulatory framework dedicated to digital assets.
Such moves can be seen across the globe as various countries create the legal framework necessary to fully integrate cryptocurrency into mainstream society. They have even included members of the public in this work, by opening up public consultations where they have listened to the advice of market participants (those involved in the cryptocurrency realm) and experts (such as lawyers and industry professionals) and have integrated this advice into their work.
Not only that but the Brazilian Congress has been drafting federal bills on stablecoins and asset segregation. This further represents Brazil’s commitment to fully regulate cryptocurrency.
Stablecoins are cryptocurrencies that have little if any volatility and remain tethered to a stable asset, such as the country’s regular form of legal tender, in Brazil’s case the Brazilain Real (R$).
Stablecoins are gaining increasing popularity with crypto users not interested in some cryptocurrency’s tendency to rise and fall in value over time, so, Congress discussing these coins represents Brazil’s desire to remain contemporary and reflect the people’s interest in crypto.
Similarly, asset segregation likely refers to a move to separate customer and company-owned assets. This will protect customers from any fallout that may be caused by a company’s failure, such as bankruptcy. Again this shows a commitment to make digital assets as safe as possible for everyone involved and to make its integration as smooth and easy as possible.
How Binance Invests in Compliance
As the Brazilian government pays so much attention to legal safety, it makes sense that they would support a company like Binance. Binance CEO Richard Teng has commented on the move, saying, “This approval underscores our commitment to compliance and security.” And his words are not an overstatement.
Binance has an incredibly robust compliance program that involves comprehensive anti-money laundering policies as well as a detailed plan for combatting the financing of terrorism.
Additionally, Binance ensures the continued security of its customers through complex verification processes that align with both Know Your Customer and Know Your Business compliance schemes.
The company is committed to improving this compliance at every opportunity and has even expanded its global compliance team by 34%, meaning that they currently have over 1000 members of staff fully dedicated to legal compliance.
Final Thoughts
By approving Binance’s acquisition of Sim;Paul the Central Bank of Brazil has displayed a genuine commitment to embracing cryptocurrency to the people of Brazil. These benefits are not only limited to the Brazilian government, however, as Binance is also displaying its enduring commitment to compliance through this move.
Finally, but perhaps most importantly, it is the regular citizens of Brazil who will be feeling the most advantages from this development, as it is those that all these companies and institutions have in mind, and it will be them who gain increased access to new digital financial services.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.66%
172,457.76
+0.66%
71,204.98
-0.84%
10,660.26
+0.33%
2,848,945
—
2,452.46
-0.02%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 172,457.76 | +0.66% | +9.73% | 171,324.31 | 172,715 | 171,132 | — |
| USD/BRL | 5.67 | +0.45% | +7.09% | 5.64 | 5.67 | 5.63 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 45.30 | +1.34% | +39.43% | 44.70 | 45.44 | 44.62 | 23,431,200 |
| VALE3 | 63.50 | -0.70% | -3.30% | 63.95 | 64.24 | 63.12 | 11,175,700 |
| ITUB4 | 42.27 | +1.42% | +7.66% | 41.68 | 42.56 | 41.62 | 19,532,400 |
| BBDC4 | 14.52 | +1.40% | -25.46% | 14.32 | 14.54 | 14.27 | 32,353,600 |
| BBAS3 | 15.10 | -2.45% | -32.89% | 15.48 | 15.60 | 14.98 | 85,573,900 |
| B3SA3 | 14.89 | +0.88% | +2.90% | 14.76 | 14.94 | 14.53 | 34,792,900 |
| ABEV3 | 15.79 | +0.25% | +15.85% | 15.75 | 15.83 | 15.64 | 13,254,800 |
| WEGE3 | 51.31 | -0.66% | +14.48% | 51.65 | 52.05 | 50.93 | 7,741,000 |
| PRIO3 | 63.30 | +0.00% | +58.93% | 63.30 | 63.83 | 62.65 | 10,460,300 |
| SUZB3 | 54.77 | -2.27% | +14.92% | 56.04 | 55.98 | 54.66 | 3,845,300 |
| RENT3 | 30.07 | +1.66% | -28.47% | 29.58 | 30.35 | 29.58 | 7,599,300 |
| AZZA3 | 15.91 | -5.86% | -45.85% | 16.90 | 17.10 | 15.72 | 6,641,600 |
| CSNA3 | 3.72 | -12.06% | -56.79% | 4.23 | 4.14 | 3.71 | 54,060,600 |
| GGBR4 | 24.73 | -0.96% | +30.78% | 24.97 | 25.09 | 24.53 | 5,458,200 |
| ENEV3 | 26.81 | -0.70% | +38.98% | 27.00 | 27.09 | 26.64 | 5,990,500 |