In a development that underscores Binance’s commitment to adhering to regulatory standards globally and regionally, they claim to have secured approval from the Central Bank of Brazil for the acquisition of Sim;paul, a broker-dealer licensed in Latin America’s most populous nation.
According to the update from Binance, this achievement marks their 21st global regulatory milestone.
By receiving full approval for the takeover of Sim;paul – a licensed broker-dealer authorized to “distribute securities and to issue electronic money (EMI) by the Central Bank of Brazil, Binance, which was operating in compliance with the regulatory requirements in the country as a global exchange, can be more efficient in complying with the ongoing regulatory advancements.”
The approval reportedly makes Binance the first crypto exchange to “have a broker-dealer license in Brazil.”
Richard Teng, Binance‘s Chief Executive Officer, highlighted the importance of this achievement, saying:
“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.”
Ranking 10th in Chainalysis global adoption index, Brazil is taking “a forward-looking approach to setting specific rules for the crypto industry.”
The Central Bank 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.”
Guilherme Nazar, Head of Latin America for Binance, 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.”
Binance’s registration in Brazil follows other regulatory advancements across the globe this year, including in Argentina, India, Kazakhstan, and Indonesia.
This latest development showcases Binance’s momentum and adds to other licenses, registrations, and authorizations in jurisdictions such as Dubai, France, Japan, El Salvador, and others.
In line with its standards, their compliance program includes “robust anti-money laundering (AML) policies and controls and a comprehensive framework for combating the financing of terrorism (CFT).”
In addition to that, key components of Binance’s compliance program include identity verification processes (Know Your Customer and Know Your Business, or KYC and KYB) and the Financial Crime Compliance (FCC) unit, designed to assist law enforcement in “investigating crypto asset-related crimes and capacity building, thereby strengthening the collaborative security of the ecosystem.”
Furthermore, they claim to have expanded their global compliance team “by 34% to 645 full-time employees, including strategic senior hires.”
They employ more than 1,000 compliance staff and contractors, ensuring that we dedicate “sufficient resources to drive Binance and the larger crypto ecosystem’s growth sufficiently and responsibly.”