Cryptocurrency exchange Binance has agreed to pay a fine of 9.6 million reais to end an investigation that began in 2020, according to Brazil’s securities regulator.
Binance and CVM Brazil Sign Agreement
The world’s leading cryptocurrency exchange Binance has reached an agreement with the Brazilian Securities and Exchange Commission (CVM) to resolve allegations of illegally offering Derivative products in the country.
According to an August 14 announcement, CVM said Binance agreed to pay a fine of 9.6 million reais (about $1.7 million) to conclude an investigation that began in 2020. The regulator had previously warned the exchange about offering Derivative products to Brazilian users without a license.
In 2020, CVM banned Binance from offering Derivative in Brazil, arguing that Derivative contracts are securities and the exchange does not have a license to operate as a securities intermediary in their country.
A Binance spokesperson said that since receiving the first notice from CVM in 2020, the exchange has taken all necessary steps to meet the regulator's requirements. CVM's acceptance of this agreement shows that Binance has made the necessary adjustments and upgrades to meet the regulator's requirements.
Notably, the CVM rejected Binance’s proposal in 2023 to pay a fine of approximately $365,000 to end the investigation.
The deal comes after CVM announced approval of a Solana ETF in Brazil. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has begun approving Bitcoin and Ether ETFs, but has yet to approve any investment products related to Solana.
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