Crypto-friendly bank Nubank seeks to acquire small banks in Brazil to preserve its name

PANews December 12 News, according to Bloomberg, sources familiar with the matter revealed that with the new regulation passed in Brazil in November prohibiting companies without a banking license from using the term “bank” or similar expressions in other languages in their branding, crypto-friendly bank Nubank has become a regulatory target of the Central Bank of Brazil. It is facing an urgent identity crisis: despite its name being “Bank,” it is not actually a bank. In response, the company is considering acquiring a small licensed bank. The source said that acquiring a bank with accumulated losses could even qualify for tax credits. Nubank has not made any decisions yet; it might abandon the acquisition and instead apply for a new license from the Central Bank of Brazil (BC). However, the process of applying for a new license is lengthy and costly, whereas an acquisition could avoid these issues.