Binance offered derivatives trading services in Brazil without securing necessary licenses, the country’s regulator concluded.
Binance will pay 9.6 million reais ($1.76 million), well over the 2 million reais the company offered to pay a year ago.
Binance, the world’s largest cryptocurrency exchange, will pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) as a settlement for offering derivatives trading services in the country without receiving the corresponding license.
“On February 15, 2024, a new proposal for a Term of Commitment was presented and, after negotiations with the Term of Commitment Committee (CTC), the applicant undertook to pay the CVM 9.6 million reais,” the agency said in a statement published on Wednesday.
In July 2020, the CVM ordered Binance to cease offering derivatives trading services in the Latin American country, arguing that it was not authorized to “act as a securities intermediary” and threatening the company with a daily fine of 1,000 reais.
Later, in August 2023, the CVM rejected Binance’s settlement proposal of 2 million ($370,000) reais.
In a separate document detailing settlement terms, the CVM said that Binance was performing “distribution and mediation 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.”