Binance has announced an agreement with Brazil’s Securities and Exchange Commission (CVM) to resolve regulatory issues that have been ongoing since 2020. The settlement marks a significant development after the CVM had previously barred the exchange from offering derivatives products in Brazil.
The ban, imposed in 2020, was based on the CVM’s determination that derivatives contracts qualify as securities, and Binance lacked the necessary authorization to operate as a securities intermediary within the country.
Under the new agreement, Binance has agreed to pay 9.6 million reais, equivalent to approximately $1.75 million USD, as part of the settlement with the CVM.
A Binance spokesperson confirmed on Wednesday that the exchange will not and is not allowed to offer derivatives in Brazil. The spokesperson emphasized that since the initial communication from the CVM in 2020, Binance has taken all necessary steps to comply with local regulations.
“The CVM’s board decision to accept the proposed Term of Commitment reaffirms that the adjustments and upgrades made by Binance throughout time are sufficient for the regulatory agency,” the spokesperson added.
This resolution signifies a step forward in Binance’s efforts to align with regulatory requirements in Brazil and highlights the company’s commitment to addressing compliance issues in various markets.
