- Background
- Settlement Terms
- Reaction and Impact
Binance, the world's largest cryptocurrency exchange, has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) for offering derivatives trading services in Brazil without the necessary license.
Background
The matter dates back to July 2020, when the CVM ordered Binance to stop offering derivatives trading services in Brazil. The regulator argued that Binance was not authorized to act as a securities broker and threatened the company with a fine of 1,000 reais per day.
Settlement Terms
On February 15, 2024, a new proposal for the Commitment Period was submitted and, following discussions with the Commitment Period Committee (CTC), the applicant committed to pay 9.6 million reais to the CVM. In August 2023, Binance offered a settlement of 2 million reais ($370,000), which CVM rejected.
Reaction and Impact
CVM detailed the terms of the settlement in a separate document, stating that Binance was involved in the distribution and brokerage of operations with securities offered to citizens residing in Brazil without being a member of the securities distribution system and without obtaining the necessary registration or exemption from registration with the CVM.
Companies need to take steps to comply with regulatory requirements in various jurisdictions where they operate.
