Brazilian Authorities Investigate Binance for Trade Violations

Brazilian authorities are currently investigating Binance according to the Valor Econômico newspaper. The cryptocurrency exchange is accused of assisting customers in avoiding a stop order on bitcoin derivatives investments. 

The Brazilian Securities and Exchange Commission (SEC), according to the newspaper, complained to the Attorney General of the State of Sao Paulo that Binance may have continued to offer cryptocurrency derivatives to its clients after the SEC placed a stop order on those sales in 2020. Under Brazilian law, futures contracts are considered securities regardless of the type of the underlying assets.

The SEC provided the police with images from August 2021 that showed instructions for Brazilian users to adjust their language setting in order to access the Binance Futures area. The SEC also stated that there was considerable Portuguese-language content available with no limitations for Brazilian customers. 

According to public material obtained by Valor Econômico, Binance reacted to the claims in February by presenting a proposal for a commitment agreement. On that proposition, no decision has been taken.

Binance said in a statement to the newspaper that it does not offer derivatives in Brazil and that it operates in compliance with the local regulatory scenario. The exchange also added that it maintains a constant dialogue with the authorities for the development of the crypto and blockchain segment in Brazil and in the world.

Binance Facing Series of Similar Charges

Binance has previously faced similar allegations. It continued to operate in the Canadian province of Ontario for months despite informing the Ontario Securities Commission that it would halt operations. Binance allegedly admitted in February that it was collaborating with US regulators to resolve compliance difficulties. Binance was sued by the Commodity Futures Trading Commission in March for suspected trading breaches.