Binance to Pay $1.7M Fine in Brazil for Derivatives Trading Violations
Crypto exchange giant Binance has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) as a settlement for an investigation into its unauthorized derivatives trading in the country, Coindesk reported.Binance’s Regulatory Struggles in BrazilCVM initiated the investigation into Binance’s operations in July 2020, accusing the company of offering derivatives trading services without the required licenses. The regulator has ordered Binance to immediately cease its activities and threatened the exchange with a daily fine of 1,000 reais if it continued to operate without proper authorization.Despite this warning, Binance initially attempted to resolve the matter by offering a 2 million reais ($370,000) settlement in August 2023. However, the CVM rejected this proposal, deeming it insufficient to address the violations. The CVM maintained that Binance was engaging in “distribution and mediation of operations with securities” without being a registered member of Brazil’s securities distribution system. The CVM’s statement, published on Wednesday, confirmed that the exchange presented a new proposal in February 2024, which was accepted after discussions with the Term of Commitment Committee (CTC). Global Implications for BinanceThe settlement in Brazil is part of a broader trend of increasing regulatory pressures on Binance globally. As the world’s largest cryptocurrency exchange, Binance has found itself under the watchful eyes of regulators in various countries, many of whom have raised concerns over the company’s compliance with local financial regulations.As Binance faces regulatory scrutiny in Brazil and beyond, the company will likely continue to adjust its operations to ensure compliance with local laws. This settlement may prompt other cryptocurrency exchanges to review their practices and tighten their compliance measures to avoid similar penalties.Expect ongoing updates as this story evolves. This article was written by Jared Kirui at www.financemagnates.com.
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Crypto exchange giant Binance has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) as a settlement for an investigation into its unauthorized derivatives trading in the country, Coindesk reported.
Binance’s Regulatory Struggles in Brazil
CVM initiated the investigation into Binance’s operations in July 2020, accusing the company of offering derivatives trading services without the required licenses. The regulator has ordered Binance to immediately cease its activities and threatened the exchange with a daily fine of 1,000 reais if it continued to operate without proper authorization.
Despite this warning, Binance initially attempted to resolve the matter by offering a 2 million reais ($370,000) settlement in August 2023. However, the CVM rejected this proposal, deeming it insufficient to address the violations.
The CVM maintained that Binance was engaging in “distribution and mediation of operations with securities” without being a registered member of Brazil’s securities distribution system. The CVM’s statement, published on Wednesday, confirmed that the exchange presented a new proposal in February 2024, which was accepted after discussions with the Term of Commitment Committee (CTC).
Global Implications for Binance
The settlement in Brazil is part of a broader trend of increasing regulatory pressures on Binance globally. As the world’s largest cryptocurrency exchange, Binance has found itself under the watchful eyes of regulators in various countries, many of whom have raised concerns over the company’s compliance with local financial regulations.
As Binance faces regulatory scrutiny in Brazil and beyond, the company will likely continue to adjust its operations to ensure compliance with local laws. This settlement may prompt other cryptocurrency exchanges to review their practices and tighten their compliance measures to avoid similar penalties.
Expect ongoing updates as this story evolves. This article was written by Jared Kirui at www.financemagnates.com.
