RIO DE JANEIRO, Thursday, August 22, 2024 – Binance, the world’s largest cryptocurrency exchange, said in a blog post on its Binance Square on August 15 that it had agreed to pay Brazil’s Securities and Exchange Commission (CVM) 9.6 million Brazilian reals ($1.76 million) to settle charges of offering derivatives trading without the necessary licenses.
The settlement amount, finalized in February 2024, is a significant increase from the 2 million Brazilian reals ($370,000) Binance initially proposed in August 2023.
The CVM had instructed Binance to cease offering derivatives trading in Brazil in July 2020, citing the exchange’s lack of authorization to operate as a securities broker.
Facing a potential daily fine of 1,000 Brazilian reals, Binance continued operations, leading to extended negotiations with the CVM. The settlement resolves claims that Binance conducted securities-related activities without being a registered member of Brazil’s securities distribution system.
Nalaysts see this agreement as highlighting the growing scrutiny of cryptocurrency platforms by regulatory bodies worldwide as they seek to enforce compliance with financial regulations, while cryptocurrencies also gaining acceptance in the traditional economic speheres.
Binance’s settlement with the CVM also could be seen as its ongoing efforts to address regulatory challenges in key markets.
