According to the Valor Econômico newspaper, the Brazilian Federal Prosecutor's Office and the Federal Police are investigating Binance. The cryptocurrency exchange has allegedly been helping clients circumvent a cease-and-desist order for investing in cryptocurrency derivatives.
According to the newspaper, Brazil's Securities and Exchange Commission (SEC) reported to the São Paulo State Attorney General that Binance may continue to offer cryptocurrency derivatives to its customers after the SEC issued a cease and desist order on its products in 2020. Regardless of the Underlying Asset Regardless of their Nature, Futures Contracts Are Considered Securities Under Brazilian Law. IONS for Brazilian used to change their language settings to acces the binance sign also selection. , but no restriction notices for Brazilian users.
Public information reviewed by Valor Econômico shows that Binance responded to the allegations in February by submitting a proposal for a commitment agreement. No decision has yet been taken on the proposal. Binance told the paper in a statement that it “reiterates that it does not offer derivatives in Brazil, that it operates in compliance with local regulatory conditions and maintains a long-term dialogue with the authorities to develop Brazil and in the world.”
Binance has faced similar allegations before. It operated in the Canadian province of Ontario for several months after telling the Ontario Securities Commission it would cease activities. Binance reportedly acknowledged in February that it was working with US regulators to comply with Binance. The US Commodity Futures Trading Commission for alleged trading violations.
