Crypto-friendly bank Nubank seeks to acquire smaller banks in Brazil to retain its name.
TL;DR
Brazil's crypto-friendly Nubank faces regulatory pressure to change its name as it lacks a banking license. It may acquire a small licensed bank to retain 'bank' in its name, avoiding a lengthy new license process.
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PANews reported on December 12th, citing Bloomberg, that sources familiar with the matter revealed that crypto-friendly bank Nubank has become a regulatory target of the Central Bank of Brazil, facing a pressing identity crisis: despite its name, it is not actually a bank. This comes as new regulations passed in Brazil in November prohibit unlicensed companies from using the word "bank" or similar expressions in foreign languages in their brands. The company is reportedly considering acquiring a small, licensed bank. The source stated that acquiring a bank with accumulated losses could even qualify for tax credits. Nubank has not yet made any decisions and may abandon the acquisition, instead applying for a new license from the Central Bank of Brazil (BC). However, obtaining a new license is a lengthy and costly process, which an acquisition could avoid.