Binance Settles with Brazil Securities Regulators for $1.7 Million
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In a significant development, Binance has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) to settle an ongoing investigation into its unauthorized derivatives trading in Brazil.
This marks the conclusion of a more than four-year-long regulatory standoff between Binance, the world’s largest cryptocurrency exchange, and Brazil’s financial authorities.
Although Binance has resumed operations, the settlement shows the exchange’s continuing challenges with global regulatory bodies, particularly as it navigates an increasingly complex international legal system and even harder local laws.
Binance’s settlement with the CVM, which was finalized this week, brings an end to an investigation that began in June 2020 when the Brazilian regulator accused Binance of offering derivatives trading without proper authorization.
The CVM had initially ordered Binance to cease all such activities immediately and threatened daily fines of 1,000 reais for non-compliance.
Over the next four years, Binance made several attempts to settle, including an August 2023 offer of 2 million reais ($370,000), which the CVM rejected as insufficient.
It wasn’t until February 2024 that a new proposal of 9.6 million reais was presented and accepted, effectively closing the case.
As part of the settlement, Binance has agreed to halt all derivatives trading in Brazil, which the CVM classifies as securities offerings.
Despite these challenges, Binance remains a dominant player in the global crypto market, though it
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