In a significant development, Binance has agreed to pay 9.6 million reais (about $1.76 million) to settle an investigation with Brazil’s Securities and Exchange Commission (CVM). This investigation focused on Binance’s unauthorized derivatives trading in Brazil, concluding a regulatory dispute that lasted over four years.
The problem started in June 2020 when the CVM claimed that Binance was providing derivatives trading without the right authorization. The regulator first insisted on ceasing such activities and threatened to impose fines of $10 million per day if they did not.
After several attempts to compromise, such as a 2 million reais offer in August 2023 which the CVM turned down, it was only in February 2024 that Binance accepted the new offer to pay 9.6 million reais. This settlement merely puts an end to the case but obliges Binance to stop all derivatives trading in Brazil.
The settlement shows that Binance continues to face challenges as to legal frameworks across the world. It is still an influential exchange covering the crypto market, but it has some issues since it has to deal with several laws across the globe. This agreement demonstrates why compliance is essential to sustaining business in various countries.
Kaiko Reports $6 Billion in Brazilian Crypto Trading Amid Binance Settlement
New statistics provided by Kaiko show that the trade in cryptocurrency in Brazil exceeded $6 billion in the initial four months of the current year. This underlines the increased activity in the Brazilian crypto market and hints that Binance’s settlement may be viewed as a logical move in a profitable and emerging market.
Brazilian regulatory problems with Binance started when the CVM demanded that Binance cease offering derivatives services, which they deemed to require a license. However, after numerous settlement attempts, Binance finally agreed to the 9.6 million reais fine that put an end to the conflict with the regulator.
Similar to its previous issues in India, fines in Brazil resulted in Binance beginning operations again after the penalties. This pattern seems to indicate that Binance may pursue legal forms of operations to keep operating in these important jurisdictions.
Source: https://www.livebitcoinnews.com/binance-settles-with-brazil-securities-regulators-for-1-7-million/