Binance, the world’s largest cryptocurrency exchange, has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) for offering derivatives trading services in Brazil without the necessary license.
“On February 15, 2024, a new proposal for the Commitment Period was submitted and, following discussions with the Commitment Period Committee (CTC), the applicant committed to pay 9.6 million reais to the CVM,” the CVM said in a statement on Wednesday.
The matter dates back to July 2020, when the CVM ordered Binance to stop offering derivatives trading services in Brazil. The regulator argued that Binance was not authorized to “act as a securities broker” and threatened the company with a fine of 1,000 reais per day.
In August 2023, Binance offered a settlement of 2 million reais ($370,000), which CVM rejected.
CVM detailed the terms of the settlement in a separate document, stating that Binance was involved in “the distribution and brokerage of operations with securities offered to citizens residing in Brazil without being a member of the securities distribution system and without obtaining the necessary registration or exemption from registration with the CVM.”
*This is not investment advice.