Binance was able to offer crypto derivatives to residents of Brazil after they were banned by the local Securities Commission (CVM). According to Valor Economicothe police and the prosecutor’s office are studying the request filed in February 2023 by the financial regulator.
In accordance with the legislation of the country, futures contracts are considered securities, regardless of the nature of the underlying assets.
According to the publication, the platform helped customers bypass restrictions. CVM has provided relevant screenshots that provide guidance on changing the language settings for accessing the Binance Futures section.
The department noted that they contain extensive content in Portuguese without any notification of their ban for users from Brazil.
Valor Econômico noted that in response to the allegations, Binance offered to sign a voluntary commitment agreement. No decision has yet been made by the authorities.
In March 2023, the US Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO, Changpeng Zhao. According to the department, the exchange violated the rules for trading derivatives by operating without proper registration.
In April, the Securities and Investments Commission of Australia canceled the license of the local branch of Binance for financial services.
Source: Cryptocurrency
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