Binance to Pay $1.76 Million Settlement for Unlicensed Derivatives Trading in Brazil

Binance, the leading global cryptocurrency exchange, has reached a settlement with Brazil's Securities and Exchange Commission (CVM) involving a payment of 9.6 million reais (approximately $1.76 million).

This agreement addresses the issue of Binance offering derivative trading services in Brazil without the required authorization.

According to a CVM announcement on Wednesday, a new proposal was submitted on February 15, 2024, and after discussions with the Commitment Period Committee (CTC), Binance agreed to the settlement terms.

The dispute began in July 2020 when the CVM instructed Binance to cease offering derivative trading services in Brazil, citing the lack of proper licensing and threatening daily fines of 1,000 reais. Although Binance proposed a settlement of 2 million reais in August 2023, the CVM declined the offer.

The CVM’s settlement document clarified that Binance had been involved in distributing and brokering securities to Brazilian residents without being registered or exempted by the CVM, which led to the imposed fine.