Resolution of years-long dispute! Binance and Brazil's SEC reach consensus on derivatives.

According todocuments from the Brazilian regulatory agency, after years of authorities banning Binance from offering derivative financial products in Brazil, the two parties have finally reached an agreement. On February 15, 2024, following negotiations with the Commitment Term Committee (CTC), Binance will pay 9,600,000.00 BRL to CVM (the Brazilian Securities and Exchange Commission) to settle the dispute. This fine is seen as a significant settlement between Binance and the Brazilian regulatory agency, marking the resolution of the derivative financial products ban incident. Authorities stated in the agreement that there are no legal obstacles to implementing the agreement. Therefore, the Anti-Money Laundering Committee deemed accepting the agreement appropriate and convenient.

First Local Cryptocurrency Regulation Action, Binance Faces Scrutiny

According to reports, Brazilian authorities have banned the international exchange Binance from offering derivative financial products services locally in Brazil since 2020. The authorities believe that regardless of the nature of the derivative financial products, they represent securities, and Binance is not qualified to act as a securities intermediary. This incident marks the first regulatory action taken by Brazilian authorities regarding cryptocurrency regulation.

Agreement Eases Tensions, Binance: No Derivative Financial Products Offered

"Since the first communication with the regulatory agency in 2020, Binance Exchange has taken all measures and necessary actions to respond to the regulatory agency and comply with local requirements. The CVM decided to accept the terms of the commitment agreement, which once again confirms the adjustments and upgrades Binance has made over the long term to meet regulatory requirements," a Binance spokesperson told the media.

This statement indicates that Binance has made adjustments and restructured its operations without violating Brazilian laws. The spokesperson further stated that currently, Binance does not offer, nor is allowed to offer any form of derivative financial products in Brazil. This demonstrates Binance's flexibility in response to global regulatory pressures and its ability to adapt to different regulatory environments in various countries.

According to the latest regulatory documents, following a meeting on August 13, 2024, Binance has committed to paying a fine of 9,600,000.00 BRL, which will be used to resolve regulatory disputes from the past few years. This move is seen as a step towards easing tensions between Binance and the Brazilian government.