Brazil has slammed a fine of $1.7 million on Crypto exchange platform, Binance over derivatives trading violations adding to the company’s global regulations.
The largest crypto exchange platform in the industry will be paying $1.7 million to the Brazilian Securities and Exchange Commission (CVM) as a settlement following an investigation into its unauthorised derivatives trading in the country.
This was announced by CVM in an official statement on its website, spelling out the details of the case and the amount Binance is expected to pay.
“The Board of the Securities and Exchange Commission (CVM), in a meeting on 8/13/2024, analysed proposals for the Term of Commitment of the following administrative sanctioning processes (PAS):
1. PAS 19957.008369/2022–11: B Fintech Technology Services Ltda.
2. PAS 19957.008992/2023–47: Gafisa SA, Guilherme Augusto Soares Benevides and Ian Masini Monteiro de Andrade.
3. B Fintech Serviços de Tecnologia Ltda presented a new proposal for a Term of Commitment to terminate PAS CVM 19957.008369/2022–11.
The statement said in a meeting held on August 29, 2023, the CVM Board decided to reject the agreement with B Fintech Serviços de Tecnologia Ltda, as it understood that the execution of the Commitment Term would not be timely and convenient.
On 15 February, 2024, a new proposal for a Term of Commitment was presented, and, after negotiations with the Term of Commitment Committee (CTC), the proponent committed to pay the CVM R$9,600,000.00.
The PFE-CVM concluded that there is no legal impediment to the execution of the agreement, therefore, the CTC considered it appropriate and convenient to accept the agreement.
“The Board followed the CTC’s opinion and accepted the signing of a Commitment Term with B Fintech Serviços de Tecnologia Ltda.” CVM Stated.
CVM initiated the investigation into Binance’s operations in July 2020, accusing the company of offering derivatives trading services without the required licenses.
Binance tried to settle the matter by offering a paltry settlement fee of $370,000 to CVM which was turned down.
Both parties finally agreed on a $1.7 million settlement fee according to the official statement by Brazil’s CVM above.