The post Binance to pay $1.7m to Brazilian regulator for violating derivatives laws appeared on BitcoinEthereumNews.com.

Binance, through its Brazilian subsidiary B Fintech Serviços de Tecnologia Ltda, has agreed to pay $1.7 million to the authorities. The settlement involved a case with Brazilian regulator Comissão de Valores Mobiliários on the back of alleged violations of local derivatives laws. The CVM’s scrutiny of Binance in Brazil dates back to 2020, when the exchange was first ordered to halt the offering of derivatives in the country.  According to Brazilian law, derivative contracts are classified as securities, requiring specific regulatory approval. However, Binance, operating through B Fintech, did not hold this authorization, prompting the CVM to take action. Despite Binance’s initial compliance by removing the Binance Futures service from its Brazilian website, it reportedly continued offering the product through workarounds, such as allowing access to clients who changed the website language to Portuguese. Following Binance’s partial compliance, the CVM closed the first case. However, the regulatory agency launched a second administrative process into Binance in December 2022 on the back of the workaround it provided to clients. As part of the settlement terms for the second case, Binance proposed a $370,000 fine in August 2023, which the CVM rejected.  The agency deemed the initial proposal insufficient given the seriousness of the allegations. Notably, the regulator found that the initial terms did not adequately address the legal violations. After further negotiations, Binance submitted a revised proposal in February this year, which included a payment of $1.7 million. The CVM, after reviewing this new proposal, found it satisfactory and legally sound, leading to the acceptance of the settlement.  Binance’s global regulatory issues Globally, Binance has faced increasing regulatory pressures. In the United States, the Commodity Futures Trading Commission accused Binance of not properly registering its derivatives products, echoing the issues it faced in Brazil.  Nigerian authorities have also held Binance executives in…

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Filed under: News - @ August 15, 2024 2:27 pm