Binance to Pay $1.7M to Brazilian Securities Regulator to Resolve Unauthorized Derivatives Case

Binance has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) to settle an investigation into its unauthorized derivatives trading services in Brazil. This payment is significantly higher than the 2 million reais previously proposed by the company.

The CVM had previously rejected Binance's settlement offer of 2 million reais ($370,000) in August 2023. The agency's investigation revealed that Binance had been offering derivatives trading services in Brazil without the required licenses.

In a statement released on Wednesday, the CVM announced, "On February 15, 2024, Binance presented a new Term of Commitment proposal. Following negotiations with the Term of Commitment Committee (CTC), the company agreed to pay 9.6 million reais."

The CVM first ordered Binance to stop offering derivatives services in Brazil in July 2020, citing the company's lack of authorization to act as a securities intermediary and imposing a daily fine of 1,000 reais.

In a detailed settlement document, the CVM outlined that Binance had been involved in "distribution and mediation of securities operations to Brazilian citizens without being a member of the securities distribution system or obtaining the required registration or exemption with the CVM."