Binance Reaches Agreement with Brazil’s SEC After Derivatives Ban
Binance announced on Wednesday that it has come to an agreement with Brazil’s Securities and Exchange Commission (CVM), marking a significant development after the regulator prohibited the crypto exchange from offering derivatives products.
The CVM initially banned Binance from providing derivatives in Brazil in 2020, asserting that such contracts qualify as securities and that Binance lacked the necessary authorization to operate as a securities intermediary within the country.
As part of the settlement, Binance will pay 9.6 million reais, which is equivalent to approximately 1.75 million U.S. dollars, as noted in a post on the CVM’s official website.
A spokesperson for Binance confirmed in an email that the exchange does not currently offer, nor is it permitted to offer, derivatives in Brazil. They added, “Since the regulator’s first communication to Binance in 2020, the exchange has taken all necessary steps to engage with the authority and adhere to local regulations.”
The spokesperson further emphasized that the CVM’s acceptance of the proposed Term of Commitment underscores the efforts Binance has made to adjust and upgrade its operations in line with regulatory expectations over time.
