The Future of Crypto Trading After Binance and Brazil CVM Agreement

Binance and Brazil CVM: A New Era of Compliance

In response to accusations of unlicensed derivatives trading, the largest cryptocurrency exchange, Binance, and Brazilian regulators have finally agreed to a $1.76 million settlement. This follows an examination of the exchange’s operations in Brazil, which lasted a full year.

• In July 2020, Binance was requested to cease its derivatives trading services in Brazil by the Brazilian Securities and Exchange Commission (CVM), citing the exchange’s lack of authorization to function as a securities intermediary.
• Should Binance disobey, the CVM threatened to punish it with 1,000 reals each day.
• A 2 million real ($370,000) compensation was presented by Binance in August 2023 to address the issue, but CVM rejected it on the grounds that it was insufficient.
• Following discussions with the Term of Commitment Committee (CTC), Binance decided to pay the CVM 9.6 million ($1.76 million) real on February 15, 2024, after submitting an updated proposal.

Binance Fights Regulatory Penalties in Brazil and Other Countries

The CVM verified the information in a statement on Wednesday, pointing out that Binance had distributed and mediated securities operations for Brazilian citizens without being a part of the securities distribution system or obtaining the required registration with the agency or an exemption from registration.

Binance has previously been subject to fines pertaining to regulatory violations. The exchange was fined $2.25 million by India’s Financial Intelligence Unit (FIU) just last month for failing to abide by anti-money laundering laws. The corporation was also penalized $4.4 million by Canada back in May for neglecting to register as an FMSB and for not reporting transactions above $10,000 CAD.

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