📣 Binance Agrees to Pay $1.76 Million to Brazilian Regulator
posted 15 Aug 2024
The payment settles allegations from the Brazilian Securities and Exchange Commission (CVM) that Binance offered derivative trading services without a license.
In 2020, the CVM banned the exchange from offering derivatives products to Brazilian citizens, stating that these financial instruments are classified as securities, for which Binance did not hold the required licenses. The regulator threatened daily fines of $186 for each day the services were unlawfully provided.
Since the regulator’s first communication to Binance in 2020, the exchange has taken all steps and necessary actions to respond to the authority and comply with local requirements. CVM's board decision to accept the proposed Term of Commitment reaffirms that the adjustments and upgrades made by Binance throughout time are sufficient for the regulatory agency,stated a Binance spokesperson to The Block.
This was Binance's second attempt to negotiate a settlement with the CVM. The regulator turned down a previous offer of $370,000 in August 2023.
Currently, Binance is neither offering nor licensed to provide derivatives products in Brazil.
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