• Brazilian authorities have launched an official investigation into Binance, alleging financial crimes facilitated through its derivatives offerings.
• Authorities allege that the exchange failed to respond to a stop order, ordering it to stop selling crypto derivatives.
• Binance has denied offering derivatives in Brazil, stating that they take their compliance obligations very seriously and are in contact with authorities overseeing the crypto space in Brazil and other jurisdictions around the world.
Binance Under Investigation In Brazil
Brazilian authorities have launched an official investigation into Binance, alleging financial crimes facilitated through its derivatives offerings. The Brazil Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) had issued a “stop order” to the cryptocurrency exchange, directing it to cease offering crypto derivatives to users in violation of the law.
Alleged Violation Of Stop Order
Authorities allege that Binance failed to comply with the stop order and continued offering crypto derivatives for Brazilian users. This prompted the Federal Police and the Federal Prosecutor’s Office to launch an investigation into the exchange. Despite being informed of this action by CVM, Binance categorically denies offering derivatives in Brazil and states that it takes its compliance obligations very seriously.
Regulators Contacted By Binance
In response to allegations of non-compliance with regulatory directives, Binance stated that it was in contact with authorities overseeing the crypto space in Brazil and other jurisdictions around the world. It is unclear how these contacts will shape up as regulators continue their investigations into potential violations of law by Binance’s operations within their jurisdiction.
Recent Difficulties For Exchange
Binance has had difficulty starting off 2023 due a number of issues related directly or indirectly to its operations within different countries or regions worldwide. This latest issue only adds fuel to fire which could spell further trouble for the world’s largest cryptocurrency exchange if found guilty of any wrongdoing or illegal activity under local laws or regulations.
The outcome of this investigation remains uncertain at present as both sides present their respective cases before Brazilian authorities. If found guilty of any wrongdoing or illegal activity under local laws or regulations, it could spell further trouble for Binance as it continues operations throughout different countries worldwide