The Brazilian Securities and Exchange Commission (CVM) on Monday ordered cryptocurrency exchange Binance to immediately cease offering derivatives trading services in the country.
- CVM said in a July 2-dated declaration that Binance is not authorized to “act as a securities intermediary” in Brazil and threatened the exchange giant - the world’s largest by trading volume - with a R$ 1,000 ($186) daily fine.
- Binance cannot market or offer derivative services of any type in Brazil, irrespective of the contract’s underlying asset, without CVM approval, the order said. That’s because Brazilian law treats all derivatives products as securities.
- Even so, Binance’s derivatives trading portal was still accessible from Brazilian IP addresses at press time Monday. Binance did not immediately respond to a CoinDesk request for comment.
- The order is CVM’s first public stance on cryptocurrency derivatives trading, according to CoinTelegraph Brazil. It was not immediately how this move will affect other exchanges.