Crypto exchange Binance has agreed to a settlement with Brazil’s Securities and Exchange Commission (CVM) to end the conflict. Binance has to provide 9.6 million reais in compensation, approximately $1.75 million. This settlement comes after several regulatory issues since CVM prohibited Binance from providing derivatives products in 2020.
Binance Agrees to $1.75 Million Fine in Brazil
In 2020, Brazil’s CVM banned Binance from offering derivative products, stating that they are securities. The regulator pointed out that Binance did not have the necessary permission to operate as a securities intermediary in the country. The recent agreement saw CVM approve of Binance’s pledge to abide by Brazil’s laws, which led to the $1.75 million fine.
The settlement demonstrates Binance’s commitment to meeting regulatory standards and compliance with local laws. A Binance representative stated that since 2020, the company has complied with all the requirements set by CVM. The CVM’s acceptance of the settlement indicates that Binance has complied with the regulator’s requirements.
Brazil and Venezuela Tighten Grip on Binance
However, despite the settlement, Binance is still barred from providing derivative products in Brazil. The company accepted this limitation and stated that offering such services is prohibited in the country. Binance noted that the deal is a significant milestone in the company’s ongoing process of regulating its activities in Brazil and ensuring its presence there.
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This comes when Binance is under pressure in several jurisdictions, including Venezuela. Recently, the Venezuelan government suspended access to Binance due to protests from the disputed presidential election results. The state-owned ISP CANTV spearheaded the blockade, which was in line with the government’s ongoing crackdown on cryptocurrency trading.
This settlement in Brazil may have ramifications on Binance’s business across other territories. The partnership with CVM proves that Binance is ready to cooperate with the regulators and solve the compliance problems. However, issues such as those in the Venezuelan market demonstrate that the global exchange is not without its complications.
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In Venezuela, Binance is working with the local authorities to address the issue. CANTV’s blockade points to the rising regulatory challenges on the exchange. The steps that Binance will take to overcome these challenges will be necessary as the exchange aims to continue its operations on the international level.
