Binance Ordered to Halt Offering Derivatives Trading in Brazil
The order is the regulator’s first public stance on cryptocurrency derivatives trading.
Jul 6, 2020 at 8:50 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/MSBVL4XYSJF4TBACMA37GGW7K4.jpg)
Brazilian law treats all derivatives products as securities, no matter the underlying asset. (Danny Nelson/CoinDesk, altered with PhotoMoosh)
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.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.