Binance, one of the largest cryptocurrency exchanges in the world, has settled an administrative procedure with the CVM, the securities regulator of Brazil. The exchange proposed to pay 9.6 million Brazilian reais (approximately $1.75 million) to resolve a case involving the irregular offering of derivatives, including futures contracts and options, dating back to 2022.
Binance Pays $1.75 Million to Settle Irregular Derivatives Offering Procedure in Brazil
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Binance Settles Investigation Into Irregular Derivatives Offering with Securities Regulator in Brazil
Binance, one of the largest cryptocurrency exchanges by volumes traded, has announced that it has acted to terminate an administrative procedure with the CVM, the securities regulator of Brazil. According to local reports, the CVM agreed to settle the ongoing administrative sanctions procedure involving the alleged irregular offering of derivatives to Brazilian customers.
The exchange was investigated for continuing to offer derivatives to its customers as late as 2022 when the CVM issued a stop order for this kind of product in 2020. Binance announced that it had stopped offering futures and contracts for Brazilian users in 2021.
At the time, local news sites indicated that this kind of product was still available for Brazilians as long as they used English as their site language.
On Wednesday, the exchange agreed to pay 9.6 million Brazilian reais ($1.75 million) to terminate this procedure, and the CVM accepted by the majority, with only one director rejecting the settlement saying that it was “not convenient and timely.”
Binance declared that it had taken the necessary actions and corrective measures to comply with local regulatory requirements. In this context, it stated that this agreement “reaffirms that the adjustments and updates made by Binance over time are sufficient for the regulator.”
It also stressed that it would strive to always protect its users, as a leader in the cryptocurrency exchange industry. It stated that it would “continue to collaborate with authorities to share its experience and contribute to the development of the industry for the benefit of users and society as a whole.”
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