Binance has opened two new offices in Sao Paulo and Rio de Janeiro, Brazil, dedicated to IT support and customer service. The crypto exchange reportedly hired more than 150 employees to operate these offices.
Binance said this expansion was an effort to cater to the country’s growing crypto and blockchain industry. The South American nation is among the top ten markets for Binance and the largest in Latin America.
According to data from Receita Federal, more than one million crypto accounts were registered in July this year, increasing the number of Brazil’s registered crypto users to around 36 million. Multiple corporations in Brazil have also adopted digital asset trading services to their investment portfolios in recent months despite the bearish global crypto markets.
Binance CEO Changpeng Zhao visited Brazil in March in preparation for the expansion. Reportedly, Binance signed a memorandum of understanding (MOU) to acquire Sim;paul Investimentos during the visit. Sim;paul is licensed as a securities brokerage by the Brazilian Securities and Exchange Commission (CVM) and Central Bank (BC). The acquisition is pending review by the BC.
JUST IN: 🇧🇷 #Binance opens two offices in the Brazilian cities of Sao Paulo and Rio de Janeiro.— Watcher.Guru (@WatcherGuru) October 3, 2022
Crypto adoption, regulation in Brazil
Brazil is ranked seventh on Chainalysis’ most recent Global Crypto Adoption Index. A number of local digital banks—including Mercado Libre, BTG Pactual and Nuban—have started offering virtual currency trading to consumers.
According to Statista.com, San Paulo was the country with the highest crypto adoption in 2021. Businesses in the city have Bitcoin ATMs and accept crypto as payment. It was reported that 20 percent of Brazilians in Rio de Janeiro actively used crypto last year.
For years the Brazilian government has been working on formulating crypto regulations. Binance is among many crypto companies supporting this development. The company said that “regulation is the only way for the digital asset industry to grow and reach the general public, allowing more people to enjoy the benefits that cryptocurrencies and blockchain offer.”
#Binance opens two offices in Brazil in a move to expand in the country and to grow crypto adoption in Latin America.— Binance (@binance) October 3, 2022
The offices were announced by @cz_binance, who visited the country in March this year. Since then, we have more than doubled the team dedicated to Brazil.
In September, it was reported that the Brazilian Securities and Exchange Commission (SEC) was looking to revise the legal framework regarding the crypto bill passed by the Senate earlier in April. According to the SEC, the passed bill did not consider crypto tokens as securities and, therefore, would not fall under its authority.
“The mentioned bill needs specific improvements, including the definition of virtual assets, prior authorization requirements, and the approval of business combinations in redundant roles with the Cade [Brazilian Federal Trade Commission],” a Brazilian SEC spokesperson said.
If approved by the president, the bill also would make it imperative for crypto companies operating in Brazil to implement the Know Your Customer (KYC) policy. The KYC policy demands crypto companies verify customers' identities during registration. This measure helps prevent money laundering.
#Binance hosted a series of crypto and blockchain workshops for law enforcement agencies in Brazil and Argentina.— Binance (@binance) September 30, 2022
The workshops are a part of our official Global Law Enforcement Training Program to help fight against crypto crime globally.
🧵 Read this thread for details. pic.twitter.com/wQIJVJcr06
Due to a revision request from the SEC, some lawmakers argued that the legislation should introduce an entirely new bill. The SEC also demanded a presidential decree to define the roles of the BC and the SEC in the crypto market to complement the bill, which some Brazilian legislators argued could cause a “legal uncertainty.”
Brazilian legislators introduced another crypto-related bill in June. If approved, it would allow Brazilians to use cryptocurrency in various transactions under clear legal guidelines and protection.